Exhibit 17.5

-Refer to Exhibit 17.5,which shows greenhouse gas emissions for a given rate of electricity production.The marginal social cost is found at _____
A) point c.
B) point a.
C) point b.
D) A
E) A'

Question

Exhibit 17.5
 
-Refer to Exhibit 17.5,which shows greenhouse gas emissions for a given rate of electricity production.The marginal social cost is found at _____
A) point c. 
B) point a. 
C) point b. 
D) A 
E) A'

Quizplus · Accepted Answer

The marginal social cost is found at the point where the marginal external cost equals the marginal private cost. This is point A on the graph, where the external cost curve (MEC) intersects the private cost curve (MPC).

Exhibit 17.5 -Refer to Exhibit 17.5,which Shows Greenhouse Gas Emissions for a Gas