Question 26 The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 400th gallon of gasoline entails the following: • a private cost of $2.8; • a social cost of $3,1: • a value to consumers of $3.2. The production of the 400th gallon of gasoline entails an O external cost of $0.1 O external cost of $0.3 O external benefit of $0.1 O external benefit of $0.4
Question 26 The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 400th gallon of gasoline entails the following: • a private cost of $2.8; • a social cost of $3,1: • a value to consumers of $3.2. The production of the 400th gallon of gasoline entails an O external cost of $0.1 O external cost of $0.3 O external benefit of $0.1 O external benefit of $0.4
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
Problem 2PA
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![Quèstion 26
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 400th gallon of gasoline entails the following:
• a private cost of $2.8;
• a social cost of $3.1:
• a value to consumers of $3.2.
The production of the 400th gallon of gasoline entails an
external cost of $0.1
O external cost of $0.3
external benefit of $0.1
O external benefit of $0.4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F62629428-5712-4afc-ba05-ca9e1be0b00e%2F5a420b11-1548-4f5c-ae7f-a3ac4c5caca5%2Foisz1dc_processed.png&w=3840&q=75)
Transcribed Image Text:Quèstion 26
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 400th gallon of gasoline entails the following:
• a private cost of $2.8;
• a social cost of $3.1:
• a value to consumers of $3.2.
The production of the 400th gallon of gasoline entails an
external cost of $0.1
O external cost of $0.3
external benefit of $0.1
O external benefit of $0.4
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