In the following figure,the marginal damage cost of the 25^th unit of emissions is equal to _______.

Question

Quizplus · Accepted Answer

From the graph, we see that the marginal damage cost curve intersects the x-axis at 25 units of emissions. This means that the 25th unit of emissions imposes no marginal damage cost. Therefore, the marginal damage cost of the 25th unit of emissions is equal to the area under the curve from 25 to 26 units of emissions, which is a rectangle with base 1 and height 10, equaling $10.

In the Following Figure,the Marginal Damage Cost of the 25th

In the Following Figure,the Marginal Damage Cost of the 25^th