Scenario 10-1 The Demand Curve for Gasoline Slopes Downward and the Supply

question 234

Multiple Choice

Scenario 10-1
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 1,000^th gallon of gasoline entails the following:
-a private cost of $3.10;
-a social cost of $3.55;
-a value to consumers of $3.70.
-Refer to Scenario 10-1. The production of the 1,000th gallon of gasoline entails an

• A) external cost of $0.15.
• B) external cost of $0.45.
• C) external benefit of $0.15.
• D) external benefit of $0.45.

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Definitions:

Inductive Reasoning

A logical process in which multiple premises, all believed true or found true most of the time, are combined to arrive at a specific conclusion.

Deductive Reasoning

A logical process in which a conclusion follows necessarily from the premises presented, moving from general premises to a specific conclusion.

Research Question

A question that outlines the problem or issue that a study aims to address, guiding the research process.

Variables

Elements or factors that can vary or change within a study, potentially influencing the research outcome.