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The graph shows the unregulated market for electricity, The marginal external cost of the pollution created is equal to the marginal cost

Economics Dec 03, 2020

The graph shows the unregulated market for electricity, The marginal external cost of the pollution created is equal to the marginal cost. With no government action to control pollution, what is the marginal social cost of the electricity generated and the deadweight loss created? Draw a point to show the marginal social cost when production is 250 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 and the marginal social cost with no pollution control. Label it 2 Draw a shape to show the deadweight loss with no pollution control. Label it. 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.
Price and cost (cents per kilowatt) 22- 20- 18- 16- 147 12- S=MC 10- 84 6- 4. D = MSB 2 2- 0+ 0 50 100 150 200 250 Quantity demanded (kilowatts per day) >>> Draw only the objects specified in the question.

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