Assume that emissions from electric utilities contribute to pollution in the form of acid rain. Which of the following describes how this affects the market for electricity?
A) The equilibrium in the market is not efficient; consumer surplus is equal to producer surplus.
B) The equilibrium in the market is not efficient; because of the cost of the acid rain, economic efficiency would be greater if more electricity were produced.
C) A deadweight loss occurs; at equilibrium the additional social cost of production is greater than the additional benefit to consumers.
D) The equilibrium in the market is not efficient; the marginal benefit from electricity is greater than the marginal social cost.
Question 2
Assume two locally owned used car dealerships that have been in direct competition for many decades. They have a choice of selling high-quality cars at a high price but also high costs because of the repairs that have to be made.
The other choice is to sell low-quality cars at a low cost but market them as high quality cars. Explain using game theory why it is in the interest of both of these companies to continue to sell high-quality cars but it may not necessarily be in the interest of a new out-of-town dealership that has recently moved into town to do the same.
The extent of acid rain in the United States has decreased.
J. M. W. Turner, Rain, Steam, and Speed—The Great Western Railway.
This label on a Toyota Camry hybrid shows the relative smog-producing emissions, but this does not ...
The material safety data sheet (MSDS) for sulfuric acid showing the detailed technical information ...
Glycerolipid/free fatty acid cycle and glyceroneogenesis
Monitoring shows that many forms of air pollution have decreased