Exhibit 17.1 -Refer to Exhibit 17.1,which Shows a Market for Electricity.What Is

Multiple Choice

Exhibit 17.1

-Refer to Exhibit 17.1,which shows a market for electricity.What is the marginal external cost of electricity?

A) The marginal external cost is negative.
B) The marginal external cost equals the marginal social benefit.
C) The marginal external cost equals the marginal private cost.
D) The marginal external cost equals the cost of pollution imposed on society.
E) The marginal external cost exceeds the marginal private cost of production.