If the marginal private cost of running a gas powered generator is $3.30 an hour the marginal external cost is $0.30 per hour, what is the marginal social cost per hour

Respuesta :

Based on the information given  the marginal social cost per hour is $3.60 per hour.

Using this formula

Marginal social cost per hour= Marginal private cost +Marginal external cost

Where:

Marginal private cost=$3.30

Marginal external cost=$0.30

Let plug in the formula

Marginal social cost per hour=$3.30+$0.30

Marginal social cost per hour=$3.60 per hour

Inconclusion  the marginal social cost per hour is $3.60 per hour.

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