MEC is a measure of and depreciation rate is a measure of
MEC is a measure of ________________ and depreciation rate is a measure of ______________ .
marginal cost; marginal cost
marginal cost; marginal benefit
marginal benefit; marginal cost
marginal benefit; marginal benefit
| a. | marginal cost; marginal cost | |
| b. | marginal cost; marginal benefit | |
| c. | marginal benefit; marginal cost | |
| d. | marginal benefit; marginal benefit |
Solution
The correct option is b
Explanation : Marginal external cost is the increase in the total external cost that occurs as a consequence of a small increase in output produced by the firm generating the pollution . Depreciation rate is the percent rate at which an asset is depreciated. It lowers the net income so that the business pays less taxes , hence it is a marginal benefit.
