If the Marginal Private Cost of Producing One Kilowatt of Power

question 196

Multiple Choice

If the marginal private cost of producing one kilowatt of power in California is ten cents and the marginal social cost of each kilowatt is fourteen cents,then the marginal external cost equals ________ per kilowatt.

• A) ten cents
• B) nineteen cents
• C) four cents
• D) zero cents
• E) fourteen cents

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