Scenario 10-1 The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 1,000th gallon of gasoline entails the following a private cost of S3.10; a social cost of S3.55; a value to consumers of S3.70
Refer to Scenario 10-1. The production of the 1,000th gallon of gasoline entails an
a. external cost of S0.15 b. external cost of S0.45 c. external benefit of $0.15 d. external benefit of $0.45