Exhibit 17.5

-Refer to Exhibit 17.5,which shows greenhouse gas emissions for a given rate of electricity production.Point a shows _____
A)the social welfare loss.
B)the optimal level of greenhouse gas emissions for a given rate of output.
C)the total social gain from producing the socially efficient output.
D)the marginal social cost.
E)the marginal social benefit.

Question

Exhibit 17.5
 
-Refer to Exhibit 17.5,which shows greenhouse gas emissions for a given rate of electricity production.Point a shows _____
A)the social welfare loss. 
B)the optimal level of greenhouse gas emissions for a given rate of output. 
C)the total social gain from producing the socially efficient output. 
D)the marginal social cost. 
E)the marginal social benefit.

Quizplus · Accepted Answer

Point a represents the optimal level of greenhouse gas emissions for a given rate of output, which is the socially efficient output level. This is the level at which the marginal social cost (MSC) of emissions is equal to the marginal social benefit (MSB) of electricity production, resulting in the maximum total social gain.

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