Multiple Choice
A chemical bathroom cleaner has an ingredient X that allows the cleaner to lather well and remove stains. The cost of producing a bottle of this bathroom cleaner is $3.60, but the bottle retails for $5.50. When consumers use the bathroom cleaner, the lather that gets washed down the drain escapes into the environment and releases allergens that cause respiratory problems for people. What is the social cost of a bottle of this cleaner?
A) $5.50 less the external cost of such a bottle of bathroom cleaner
B) the cost paid by other people as a result of the use of such a bottle of bathroom cleaner
C) $5.50 plus the external cost of such a bottle of bathroom cleaner
D) $3.60
Correct Answer:

Verified
Correct Answer:
Verified
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