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)

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)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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)

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