The graph shows the unregulated market for electricity. The marginal external cost of the pollution created is equal to the marginal private cost of producing electricity at every quantity of electricity produced. XXX Draw a point to show the marginal social cost when production is 500 kilowatts per day. Label it 1. Draw the marginal social cost curve. Label it MSC. Draw a point to show the quantity of electricity produced with no pollution control and the marginal social cost of the electricity generated. Label it 2. Draw a shape to show the deadweight loss with no pollution control. Label it DWL. The deadweight loss created by the pollution is s >>> Remember that the price given on the y-axis is in cents but you must answer in dollars. 24- 20- 16- 12- 8- Price and cost (cents per kilowatt) 100 S=MC D 300 400 200 Quantity (kilowatts per day) >>> Draw only the objects specified in the question. 500 600
The graph shows the unregulated market for electricity. The marginal external cost of the pollution created is equal to the marginal private cost of producing electricity at every quantity of electricity produced. XXX Draw a point to show the marginal social cost when production is 500 kilowatts per day. Label it 1. Draw the marginal social cost curve. Label it MSC. Draw a point to show the quantity of electricity produced with no pollution control and the marginal social cost of the electricity generated. Label it 2. Draw a shape to show the deadweight loss with no pollution control. Label it DWL. The deadweight loss created by the pollution is s >>> Remember that the price given on the y-axis is in cents but you must answer in dollars. 24- 20- 16- 12- 8- Price and cost (cents per kilowatt) 100 S=MC D 300 400 200 Quantity (kilowatts per day) >>> Draw only the objects specified in the question. 500 600
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 3PA: Greater consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on...
Related questions
Question
Help plz
graph plz
3
8
Transcribed Image Text:%
5
The graph shows the unregulated market for electricity.
The marginal external cost of the pollution created is equal to the
marginal private cost of producing electricity at every quantity of
electricity produced.
8
Draw a point to show the marginal social cost when production is 500
kilowatts per day. Label it 1.
Draw the marginal social cost curve. Label it MSC.
Draw a point to show the quantity of electricity produced with no
pollution control and the marginal social cost of the electricity generated.
Label it 2.
Draw a shape to show the deadweight loss with no pollution control.
Label it DWL.
The deadweight loss created by the pollution is $
>>> Remember that the price given on the y-axis is in cents but you
must answer in dollars.
t
6
y
h
Selected:
none
&
7
O
*
8
k
✓
(
9
24
20
16-
12
8-
4-
0-
Price and cost (cents per kilowatt)
0
200
300 400 500
Quantity (kilowatts per day)
>>> Draw only the objects specified in the question.
D Delete Clear
"
100
)
0
р
?
..
S=MC
✔
D
600
38
16
Next
Q
x
S US
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
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
The graph shows the unregulated market for electricity.
Suppose that at every quantity produced, the marginal external cost of electricity equals the marginal private cost of production.
To show the market outcome, draw the following four items on the graph:
1. Draw a point to show the marginal social cost when the utility produces 500 kilowatts per day. Label it 1.
2. Draw the marginal social cost curve. Label it
MSC
.
3. Draw a point to show the electricity produced and its marginal social cost. Label it 2.
4. Draw a shape to show the deadweight loss created. Label it
DWL
.
>>>
Draw only the objects specified in the
question.
Solution
by Bartleby ExpertKnowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning