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If the Marginal Private Cost of Running a Car Is

question 254

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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?


Definitions:

ITQs

Individual Transferable Quotas, a common tool in fisheries management allowing holders to catch a specific percentage of the total allowable catch.

Pacific Halibut

A large species of flatfish found in the North Pacific Ocean, highly valued for commercial fishing and cuisine.

Present Value

The present value of a future amount of money or series of cash payments, calculated using a particular return rate.

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or securities at any given time.

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