Calculations of the Social Cost of Carbon Can Be Used

question 28

Multiple Choice

Calculations of the social cost of carbon can be used to

• A) set carbon taxes to achieve a socially efficient level of pollution.
• B) assist with regulatory impact analysis.
• C) guide regulatory decisions by the EPA.
• D) all of the above.

---

Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the efficiency of resource utilization beyond just financial gain.

Marginal Costs

The cost of producing a subsequent unit of a product or service.

Long Run

The long run is a period in economics where all inputs or factors of production can be varied, allowing firms to adjust fully to market conditions.

Economic Profit

The split between total revenue generation and total cost accrual, encompassing both declared and understood costs.