The table below shows some hypothetical data on the costs associated with the use of a liter of gasoline in a European country.
Refining, distributing, and selling of gasoline all take place within this European country.
1. In euros, what is the private cost for an individual of a liter of gasoline in Europe (Ex: If your answer is 3.25 Euros then enter 3.25) ?
2. What is the social cost, in euros, of a liter of gasoline?
Cost Euros
Cost of imported oil ... 0.5
Cost of refining oil to gasoline ... 1
Cost of distributing and selling gasoline ... 0.75
Government tax ... 2.5
Cost of pollution from one liter of gasoline ... 2
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