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:

Closely Held

Closely held companies are usually small, owned by a small number of people, typically managers and their common shares are not actively traded.

Primary Market Transactions

Deals that occur in the primary market, where new securities are issued and sold by companies or governments directly to investors, raising capital.

Stock Exchanges

Marketplaces where securities, such as stocks and bonds, are bought and sold by investors.

Issuing Companies

Companies or entities that offer securities, such as stocks or bonds, to the public for the purpose of raising capital.