If the Marginal Private Cost of Running a Car Is

question 102

Multiple Choice

If the marginal private cost of running a car is $0.30 a kilometre and the marginal external cost is $0.10, what is the marginal social cost?

• A) $0.40
• B) $0.20
• C) $3.00
• D) $0.03
• E) None of the above answers is correct.