Sub: Economics Topic: Micro Economics
Question:
Graphical depiction of Marginal private cost (MPC), Marginal social cost and
Marginal external cost
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1. On the graph above, at the rate of output shown (q*), label
i. Marginal private cost (MPC)
ii. Marginal social cost (MSC)
iii. Marginal external cost (MEC)
2. What does the graph imply about damages as output increase?
3. Label the two lines shown in the graph.
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Sub: Economics Topic: Micro Economics
B______________________________________
Solution:
** End of the Solution **
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*The Homework solutions from ClassOf1 are intended to help the student understand the approach to solving the problem and not for submitting the same in
lieu of your academic submissions for grades.