If the Marginal Private Cost of Running a Car Is

question 254

Multiple Choice

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

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

Analyze the implications of input prices on production cost using isocost lines.

Recognize the conditions for minimum cost output in the context of isocost and isoquant lines.

Interpret the construction and significance of expansion paths in long-run production decisions.

Distinguish between short-run and long-run costs, including variable and fixed costs.

---

Definitions:

Service Sector

The segment of the economy that provides services rather than producing goods, including industries such as retail, hospitality, finance, and education.

Different Societies

Various groups of individuals living together under a shared system of politics, economy, and culture, each with unique characteristics and social norms.

Stages of Aging

The distinct phases in an individual's life characterized by specific physical, psychological, and social changes related to aging.

Gerontocracies

Forms of government or rule in which the power is held primarily by the elderly or older members of society.