-The figure above shows the marginal social cost curve of generating electricity, the marginal private cost curve, and the demand curve. If the market is competitive and unregulated, the equilibrium quantity is ________ billion kilowatt hours per day and the efficient quantity is ________ billion kilowatt hours per day
A) 250; 0
B) 150; 150
C) 0; 150
D) 150; 200
E) 200; 150

Question

-The figure above shows the marginal social cost curve of generating electricity, the marginal private cost curve, and the demand curve. If the market is competitive and unregulated, the equilibrium quantity is ________ billion kilowatt hours per day and the efficient quantity is ________ billion kilowatt hours per day
A) 250; 0 
B) 150; 150 
C) 0; 150 
D) 150; 200 
E) 200; 150

Quizplus · Accepted Answer

In a competitive and unregulated market, the equilibrium quantity is where the demand curve intersects the marginal private cost curve, which is 200 billion kilowatt hours per day. The efficient quantity is where the demand curve intersects the marginal social cost curve, which is 150 billion kilowatt hours per day.

-The Figure Above Shows the Marginal Social Cost Curve of Generating