Foundations of Economics, 8th Edition

Chapter Checkpoint

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Study Plan Problems and Applications

Table 1 shows the demand schedule for electricity from a coal-burning utility. Table 2 shows the utility’s cost of producing electricity and the external cost of the pollution created. Use this information to work Problems 1 to 3.

Table 1

Demand for Electricity

Table 1 Full Alternative Text

Table 2

Private and External Costs

Table 2 Full Alternative Text

1. With no pollution control, calculate ...