The first table shows the demand schedule for electricity from a coal-burning utility. The second table shows the utility’s cost of producing electricity and the external cost of the pollution created.

With no pollution control, calculate the quantity of electricity produced, the price of electricity, and the marginal external cost of the pollution generated.

Transcribed Image Text:

Price (cents per kilowatt) 4 8 12 2 6 20 24 16 Quantity demanded (kilowatts per day) 500 400 300 200 100 0