Table 1 shows the demand schedule for electricity from a coal burning utility. Table 2 shows the utility's cost of producing electricity and the external cost of the pollution created. With no pollution control, calculate the quantity of electricity produced, the price of electricity, and the marginal external cost of the pollution generated. With no pollution control, the quantity of electricity produced is The price of electricity is cents a kilowatt. kilowatts a day. Table 1 Table 2 Price (cents per kilowatt) 4 8 12 16 20 24 Quantity (kilowatts per day) 0 100 200 300 400 500 Marginal cost 0 2 4 6 8 10 Quantity demande (kilowatts per day) 500 400 300 200 100 0 Marginal external cost (cents per kilowatt) 0 2 4 6 8 10
Table 1 shows the demand schedule for electricity from a coal burning utility. Table 2 shows the utility's cost of producing electricity and the external cost of the pollution created. With no pollution control, calculate the quantity of electricity produced, the price of electricity, and the marginal external cost of the pollution generated. With no pollution control, the quantity of electricity produced is The price of electricity is cents a kilowatt. kilowatts a day. Table 1 Table 2 Price (cents per kilowatt) 4 8 12 16 20 24 Quantity (kilowatts per day) 0 100 200 300 400 500 Marginal cost 0 2 4 6 8 10 Quantity demande (kilowatts per day) 500 400 300 200 100 0 Marginal external cost (cents per kilowatt) 0 2 4 6 8 10
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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