C. ✓ d. above. ་ Calculate the dead-weight loss for each vehicle type. Indicate it on your graph For what values of 8 is the DWL from EEVs lower than gas? 189... Suppose that we have one city and two modes of transportation: energy efficient venicles (EEV) and gas vehicles. The private marginal benefits and costs are described below. PMBEEV: PE=20-20 PMC EEV: PE=2+ Q PMB Gas: P=12-200 PMC Gas: PG = 4+ Q& where PMB = private marginal benefit (demand), PMC = private marginal cost, and SMC = social marginal cost. Ther marginal external cost (MEC) varies by car type. MECE = 38 MECG = 5 where 8 is a positive number that measures the cleanliness of energy production. a. Derive the social marginal cost curves for EEVs and for gas vehicles. b_ Draw two graphs: a graph of EEVs and a graph for gas vehicles. Include the SMC, PMC, atlu PMB. Label all intercepts.
C. ✓ d. above. ་ Calculate the dead-weight loss for each vehicle type. Indicate it on your graph For what values of 8 is the DWL from EEVs lower than gas? 189... Suppose that we have one city and two modes of transportation: energy efficient venicles (EEV) and gas vehicles. The private marginal benefits and costs are described below. PMBEEV: PE=20-20 PMC EEV: PE=2+ Q PMB Gas: P=12-200 PMC Gas: PG = 4+ Q& where PMB = private marginal benefit (demand), PMC = private marginal cost, and SMC = social marginal cost. Ther marginal external cost (MEC) varies by car type. MECE = 38 MECG = 5 where 8 is a positive number that measures the cleanliness of energy production. a. Derive the social marginal cost curves for EEVs and for gas vehicles. b_ Draw two graphs: a graph of EEVs and a graph for gas vehicles. Include the SMC, PMC, atlu PMB. Label all intercepts.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:C. ✓
d.
above.
་
Calculate the dead-weight loss for each vehicle type. Indicate it on your graph
For what values of 8 is the DWL from EEVs lower than gas?
Transcribed Image Text:189...
Suppose that we have one city and two modes of transportation: energy efficient
venicles (EEV) and gas vehicles. The private marginal benefits and costs are described below.
PMBEEV: PE=20-20
PMC EEV: PE=2+ Q
PMB Gas: P=12-200
PMC Gas: PG = 4+ Q&
where PMB = private marginal benefit (demand), PMC = private marginal cost, and SMC = social
marginal cost. Ther marginal external cost (MEC) varies by car type.
MECE = 38
MECG = 5
where 8 is a positive number that measures the cleanliness of energy production.
a.
Derive the social marginal cost curves for EEVs and for gas vehicles.
b_
Draw two graphs: a graph of EEVs and a graph for gas vehicles. Include the SMC,
PMC, atlu PMB. Label all intercepts.
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