A Marginal External Cost of a Product Is Equal to

question 53

Multiple Choice

A marginal external cost of a product is equal to

• A) what the producer has to pay to hire resources to produce another unit.
• B) the cost someone other than the producer incurs when another unit is produced.
• C) the cost the producer incurs to produce another unit.
• D) what the consumer must pay when he or she buys the good or service.
• E) None of these answers describes a marginal external cost.

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Definitions:

Benefit

An advantage or profit gained from something, often used in legal terms to describe gains in contracts or employment.

Debt

Money that is owed or due to another individual, entity, or institution.

Enforceable

Capable of being imposed by law or through legal action, usually in reference to contracts, agreements, or regulations.

Sale of Goods

A transaction between a buyer and seller where the ownership of tangible personal property is transferred for a price.