If the Marginal Social Cost of Generating a Kilowatt of Electricity

question 145

Multiple Choice

If the marginal social cost of generating a kilowatt of electricity is $0.10 and the marginal private cost is $0.08,what is the marginal external cost?

• A) $0.18
• B) $0.10
• C) $0.08
• D) $0.02
• E) $0.80

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Definitions:

Japanese Imports

Goods or services brought into another country from Japan for commercial purposes or consumption.

U.S. Producers

Refers to individuals or companies within the United States that manufacture or supply goods and services.

Tariff

A tax imposed on imported goods and services to raise their price and protect domestic industries.

Total Surplus

Total surplus is the sum of consumer surplus and producer surplus in a market, representing the total benefits to society from trading goods and services.