Oregon legislative committee passes cap-and-trade bill Lawmakers are moving Oregon a step closer to adopting what would be the nation's second economywide carbon pricing scheme. after California. Price and cost (cents per mile) Q 40- S=MC a G Source: Portland Business Journal, May 17, 2019 35 The transportation sector is Oregon's largest contributor to carbon emissions. Under what conditions would Oregon's carbon pricing scheme reduce carbon emissions to the efficient quantity? Use a graph to illustrate your explanation. Show the effects of setting the price of carbon too low and too high. 30- 25 20 15 and permits traded at a The efficient quantity of transportation would be produced if the quantity of permits was set such that, price OA. marginal private cost of transportation equals marginal benefit, above marginal external cost B. marginal social cost of transportation equals marginal benefit, equal to marginal external cost OC. marginal social cost of transportation equals marginal benefit; below marginal external cost OD. carbon emissions were eliminated; equal to marginal benefit OE. marginal private cost of transportation equals marginal benefit, equal marginal external cost The graph shows the market for transportation in Oregon with no cap-and-trade system. On the graph, draw the marginal social cost curve of transportation. Label it. Draw a point to show the outcome of a cap-and-trade system that results in an efficient amount of emissions. Label it 1. Draw a point to show the outcome when the price of a permit is too low. Label it 2. Draw a point to show the outcome when the price of a permit is too high. Label it 3. 10- D=MB 5 100 200 300 400 500 600 700 800 Quantity (thousands of miles) >>> Draw only the objects specified in the question.
Oregon legislative committee passes cap-and-trade bill Lawmakers are moving Oregon a step closer to adopting what would be the nation's second economywide carbon pricing scheme. after California. Price and cost (cents per mile) Q 40- S=MC a G Source: Portland Business Journal, May 17, 2019 35 The transportation sector is Oregon's largest contributor to carbon emissions. Under what conditions would Oregon's carbon pricing scheme reduce carbon emissions to the efficient quantity? Use a graph to illustrate your explanation. Show the effects of setting the price of carbon too low and too high. 30- 25 20 15 and permits traded at a The efficient quantity of transportation would be produced if the quantity of permits was set such that, price OA. marginal private cost of transportation equals marginal benefit, above marginal external cost B. marginal social cost of transportation equals marginal benefit, equal to marginal external cost OC. marginal social cost of transportation equals marginal benefit; below marginal external cost OD. carbon emissions were eliminated; equal to marginal benefit OE. marginal private cost of transportation equals marginal benefit, equal marginal external cost The graph shows the market for transportation in Oregon with no cap-and-trade system. On the graph, draw the marginal social cost curve of transportation. Label it. Draw a point to show the outcome of a cap-and-trade system that results in an efficient amount of emissions. Label it 1. Draw a point to show the outcome when the price of a permit is too low. Label it 2. Draw a point to show the outcome when the price of a permit is too high. Label it 3. 10- D=MB 5 100 200 300 400 500 600 700 800 Quantity (thousands of miles) >>> Draw only the objects specified in the question.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Oregon legislative committee passes cap-and-trade bill
Lawmakers are moving Oregon a step closer to adopting what would be the nation's second economywide carbon pricing scheme.
after California.
Price and cost (cents per mile)
Q
40-
S=MC
a
G
Source: Portland Business Journal, May 17, 2019
35
The transportation sector is Oregon's largest contributor to carbon emissions.
Under what conditions would Oregon's carbon pricing scheme reduce carbon emissions to the efficient quantity?
Use a graph to illustrate your explanation. Show the effects of setting the price of carbon too low and too high.
30-
25
20
15
and permits traded at a
The efficient quantity of transportation would be produced if the quantity of permits was set such that,
price
OA. marginal private cost of transportation equals marginal benefit, above marginal external cost
B. marginal social cost of transportation equals marginal benefit, equal to marginal external cost
OC. marginal social cost of transportation equals marginal benefit; below marginal external cost
OD. carbon emissions were eliminated; equal to marginal benefit
OE. marginal private cost of transportation equals marginal benefit, equal marginal external cost
The graph shows the market for transportation in Oregon with no cap-and-trade system.
On the graph, draw the marginal social cost curve of transportation. Label it.
Draw a point to show the outcome of a cap-and-trade system that results in an efficient amount of emissions. Label it 1.
Draw a point to show the outcome when the price of a permit is too low. Label it 2.
Draw a point to show the outcome when the price of a permit is too high. Label it 3.
10-
D=MB
5
100
200 300 400 500 600 700 800
Quantity (thousands of miles)
>>> Draw only the objects specified in the question.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education