Use the figure below to answer the following questions.

Figure 16.2.3
-Refer to Figure 16.2.3. In this market there is a marginal external
A)cost of $14 a tonne.
B)cost of $12 a tonne.
C)cost of $2 a tonne.
D)benefit of $2 a tonne.
E)benefit of $12 a tonne.

Question

Use the figure below to answer the following questions.
  
Figure 16.2.3
-Refer to Figure 16.2.3. In this market there is a marginal external
A)cost of $14 a tonne. 
B)cost of $12 a tonne. 
C)cost of $2 a tonne. 
D)benefit of $2 a tonne. 
E)benefit of $12 a tonne.

Quizplus · Accepted Answer

The marginal external cost is the difference between the marginal social cost and the marginal private cost, which is $2 a tonne.

Use the Figure Below to Answer the Following Questions