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.

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Definitions:

Simp

A slang term often used to criticize a person who is perceived as giving excessive attention to someone they have an interest in, typically in a way that is not reciprocated.

Conj

An abbreviation for "conjunction," which is a compound statement formed by combining two statements with the word "and."

Add

To combine or join something with another, resulting in a sum or total.

Sex-Linked

A characteristic, such as a genetic disorder, that is determined by genes located on the sex chromosomes, typically the X or Y chromosome.