Ecological economist A. Treehugger is concerned about the significant amount of sulfur dioxide emissions associated with the production of electricity. Sulfur dioxide can result in acid rain that is harmful to human and environmental health. Price Social Marginal Costs External Costs = $0.04 $0.20 Private Marginal Costs $0.17- $0.16 'Demand 1,000 3,000 Quantity (kWh)

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 9SQP
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According to the graph above, what would be the market equilibrium price and quantity of electricity produced?

According to the graph above, what is the socially efficient price and quantity in this market?

 

Ecological economist A. Treehugger is concerned about the significant amount of sulfur dioxide emissions associated with the production of electricity. Sulfur dioxide
can result in acid rain that is harmful to human and environmental health.
Price
Social Marginal Costs
External Costs = $0.04
$0.20
Private Marginal Costs
$0.17-
$0.16
'Demand
1,000 3,000
Quantity (kWh)
Transcribed Image Text:Ecological economist A. Treehugger is concerned about the significant amount of sulfur dioxide emissions associated with the production of electricity. Sulfur dioxide can result in acid rain that is harmful to human and environmental health. Price Social Marginal Costs External Costs = $0.04 $0.20 Private Marginal Costs $0.17- $0.16 'Demand 1,000 3,000 Quantity (kWh)
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