The Cost of Running an Electrical Utility Includes Costs for Fuel

question 133

Multiple Choice

The cost of running an electrical utility includes costs for fuel, labor, and capital. In addition, there are sometimes costs associated with pollution from the utility, such an increased health care costs for people living near the utility. To an economist, the costs associated with the pollution resulting from additional electricity are:

• A) marginal private costs.
• B) marginal social costs.
• C) the difference between marginal social costs and marginal private costs.
• D) the sum of marginal social costs and marginal private costs.

---

Definitions:

Columnar Style

Pertains to a layout or format where data or text is arranged in columns, commonly used in tables, newspapers, and reports.

Regular Intervals

Periods of time or spaces that are evenly distributed or occur at consistent, predictable intervals.

Designated Period

A specific time frame that has been set aside for a particular purpose or activity.

Weekly View

A calendar or planner layout that displays events and appointments organized by the week.