Marginal Private Cost

question 47

Multiple Choice

Marginal private cost

• A) is the cost of producing an additional unit of a good or service that is paid by the producer of that good or service.
• B) is always zero if there is an external cost.
• C) equals the marginal social cost only if the marginal external cost is positive.
• D) is the cost of producing an additional unit of a good or service that falls on people other than the producer of that good or service.
• E) the cost of producing an additional unit of a good or service that is paid by the entire society.

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Definitions:

Human Activities

Actions and endeavors undertaken by humans, often referring to those that affect the environment or socio-economic conditions.

CFCs

Chlorofluorocarbons, chemicals used in aerosols, refrigerants, and foam blowings that contribute to ozone layer depletion.

Upper Atmosphere

The part of the atmosphere that is above the troposphere, including the stratosphere, mesosphere, thermosphere, and exosphere, which plays a critical role in atmospheric dynamics and chemistry.