Question : 31) The marginal cost incurred by the entire society to : 1241070

31) The marginal cost incurred by the entire society to produce a good or service is the

A) marginal external cost.

B) marginal private cost.

C) marginal social cost.

D) marginal social benefit.

E) marginal private benefit.

32) Marginal social cost is equal to

A) the amount people who buy a product pay for another unit.

B) whatever producers have to pay to produce output.

C) the sum of marginal private cost and the marginal external cost.

D) the average of marginal private cost and the marginal external cost.

E) None of the above answers is correct.

33) Marginal social cost is the

A) price a consumer pays for one more unit of a good.

B) cost a producer incurs producing one more unit of a good.

C) cost of producing one more unit of a good that falls on someone other than the producer.

D) sum of the cost a producer incurs from producing one more unit of a good plus the cost of producing one more unit of a good that falls on someone other than the producer.

E) same as marginal cost only if there is an external cost when the good is produced.

34) Which of the following equations is correct?

A) MC = MSC + marginal external cost

B) MSC = MC ÷ marginal external cost

C) MSC = MC + marginal external cost

D) MSC = MC × marginal external cost

E) MC = marginal external cost – MSC

35) The marginal social cost of producing a good or service is the

A) cost of producing an additional unit borne by the producer.

B) cost of producing an additional unit borne by people other than the producer.

C) sum of the marginal private cost and the marginal external cost.

D) same as marginal external cost.

E) sum of the marginal private cost and the marginal external cost minus the marginal social benefit.

36) Which of the following is true?

A) MSC = MC + Marginal external cost

B) MC = Marginal external cost – MSC

C) MC = Marginal external benefit + MSC

D) MSC = Marginal external cost + marginal external benefit

E) MSC = Marginal external cost – marginal external benefit

37) If there is no external cost, then marginal social cost

A) increases as output increases.

B) decreases as output increases.

C) is constant regardless of the level of output.

D) is unrelated to output levels.

E) first increases and then decreases as output increases.

38) If a product has zero external costs, then

A) marginal social cost equals marginal private cost.

B) marginal social cost is greater than marginal private cost.

C) marginal social cost is less than marginal private cost.

D) marginal social cost equals zero.

E) We need more information to determine the relationship between marginal private cost and marginal social cost.

39) If the marginal external cost of building a children’s playground equals zero, then the

i.marginal private cost equals the marginal social cost.

ii.marginal social cost equals zero.

iii.marginal private cost equals zero.

A) i only

B) ii only

C) iii only

D) ii and iii

E) i and ii

40) If the marginal private cost of running a car is $0.30 a mile and the marginal external cost is $0.10, what is the marginal social cost?

A) $0.20

B) $3.00

C) $0.03

D) $0.40

E) None of the above answers is correct.