If a Product Has Zero External Costs, Then

question 83

Multiple Choice

If a product has zero external costs, then

• A) marginal social cost equals zero.
• B) marginal social cost is less than marginal private cost.
• C) marginal social cost equals marginal private cost.
• D) marginal social cost is greater than marginal private cost.
• E) We need more information to determine the relationship between marginal private cost and marginal social cost.

---

Definitions:

Pyrolysis

The chemical decomposition of a substance through the application of heat, in the absence of oxygen.

Law of Conservation

A principle stating that mass in an isolated system is neither created nor destroyed by chemical reactions or physical transformations.

Energy

The capacity to do work or produce change, existing in forms such as heat, kinetic energy, potential energy, and electrical energy.

Calorimeter

An apparatus used for measuring the amount of heat involved in chemical reactions or physical changes as well as heat capacity.