Question

The table below shows some hypothetical data on the costs associated with the use of a liter of gasoline in a European country.

1. In Euros, what is the private cost for an individual of a liter of gasoline in Europe?
Cost (Euros)
Cost of imported oil 0.5
Cost of refining oil to gasoline 1
Cost of distributing and selling gasoline 0.75
Government taxes 2.5
Cost of pollution from one liter of gasoline 2

Answer 1

The private cost for an individual of a liter of gasoline in Europe is 4.75

Step-by-step explanation:

Private cost is a supplier's or producer's cost of providing goods and services without any external cost.

Private cost = 0.50 + 1 + 0.75 + 2.50

= 4.75

Therefore, The private cost for an individual of a liter of gasoline in Europe is 4.75