Use the Table Below to Answer the Following Question

question 52

Multiple Choice

Use the table below to answer the following question.
Table 16.2.3

-Refer to Table 16.2.3. The first two columns of the table show the demand schedule for electricity from a coal burning utility; the second and third columns show the utility's cost of producing electricity. The marginal external cost of the pollution created is equal to the marginal cost.
Suppose the government levies a pollution tax such that the utility generates the efficient quantity of electricity. The pollution tax is ________ cents a kilowatt hour.

• A)2
• B)4
• C)6
• D)8
• E)10

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Definitions:

Algebraic Expression

An algebraic expression is a mathematical phrase that can contain ordinary numbers, variables (like x or y), and operations (like add, subtract, multiply, and divide).

Simplified Expression

A mathematical expression that has been reduced to its simplest form, eliminating parentheses and combining like terms.

Algebraic Expression

A mathematical construction that comprises standard digits, placeholders such as x or y, and mathematical processes like adding, subtracting, multiplying, and dividing.

Parabola

The graph of a quadratic function, represented as a symmetric curve that opens either up or down.