Question : 60) The figure above shows the marginal social cost curve : 1226057

 

 

60) The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The difference between the marginal cost curve and the marginal social cost curve equals

A) marginal private cost.

B) private cost.

C) external cost.

D) marginal external cost.

E) Coasian cost.

 

61) The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 100 billion kilowatt hours are produced is

A) 5¢ per kilowatt.

B) 10¢ per kilowatt.

C) 15¢ per kilowatt.

D) 20¢ per kilowatt.

E) 0¢ per kilowatt.

62) The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 200 billion kilowatt hours are produced is

A) 0¢ per kilowatt.

B) 10¢ per kilowatt.

C) 20¢ per kilowatt.

D) 15¢ per kilowatt.

E) 5¢ per kilowatt.

 

63) The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal external cost when 100 billion kilowatt hours are produced is

A) 0¢ per kilowatt.

B) 5¢ per kilowatt.

C) 10¢ per kilowatt.

D) 15¢ per kilowatt.

E) 20¢ per kilowatt.

 

64) The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal external cost when 200 billion kilowatt hours are produced is

A) 0¢ per kilowatt.

B) 10¢ per kilowatt.

C) 20¢ per kilowatt.

D) 15¢ per kilowatt.

E) 5¢ per kilowatt.

65) The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost paid by the producers and everyone else in society when 100 billion kilowatt hours are produced is

A) 0¢ per kilowatt.

B) 5¢ per kilowatt.

C) 10¢ per kilowatt.

D) 20¢ per kilowatt.

E) 15¢ per kilowatt.

 

66) The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost paid by the producers and everyone else in society when 200 billion kilowatt hours are produced is

A) 0¢ per kilowatt.

B) 10¢ per kilowatt.

C) 20¢ per kilowatt.

D) 15¢ per kilowatt.

E) 5¢ per kilowatt.

 

Quantity of steel (millions of tons per week)

Marginal benefit

(dollars per ton)

Marginal social cost (dollars per ton)

5

40

20

10

35

25

15

30

30

20

25

35

25

20

40

 

67) The table above shows information about the costs and benefits of a steel smelter that pollutes the air of a city. The market is efficient when the quantity of steel produced is ________ tons per week.

A) 5

B) 10

C) 15

D) 20

E) 25

 

68) The table above shows information about the costs and benefits of a steel smelter that pollutes the air of a city. If the marginal external cost is $10 per ton at every quantity of steel produced, the equilibrium quantity when the steel industry is unregulated is ________ tons per week.

A) 5

B) 15

C) 20

D) 25

E) 10

69) The figure above shows the costs and benefits associated with producing paper. What is the marginal external cost when output is 6 tons?

A) $1,600

B) $1,200

C) $1,000

D) $600

E) $400

 

70) The figure above shows the costs and benefits associated with producing paper. What is the unregulated competitive market level of output?

A) 0

B) 4 tons

C) 6 tons

D) More than 6 tons

E) None of the above answers is correct.

71) The figure above shows the costs and benefits associated with producing paper. What is the efficient level of output?

A) 0

B) 4 tons

C) 6 tons

D) More than 6 tons

E) None of the above answers is correct.