Refer to Figure 16.2. The ________ imposed as a result of producing cars is $10.00 per car.

A) marginal social cost
B) marginal damage cost
C) total cost
D) marginal private cost

Question

Refer to Figure 16.2. The ________ imposed as a result of producing cars is $10.00 per car.A)  marginal social costB)  marginal damage costC)  total costD)  marginal private cost

Grace McFarlane · Accepted Answer

Final Answer : B, Explanation :  The correct term for the cost imposed as a result of producing cars, which is not accounted for by the private market, is the marginal damage cost. This cost represents the external costs or negative externalities, such as pollution, that affect third parties.

Refer to Figure 16.2. The ________ imposed as a result of producing cars is $10.00 per car.

A) marginal social cost
B) marginal damage cost
C) total cost
D) marginal private cost

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Learning Objectives

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