-The Figure Above Shows the Marginal Social Cost Curve of Generating

question 133

Multiple Choice

-The figure above shows the marginal social cost curve of generating electricity,the marginal private cost curve,and the demand curve.If the market is competitive and unregulated,the equilibrium quantity is ________ billion kilowatt hours per day and the efficient quantity is ________ billion kilowatt hours per day

• A) 150; 200
• B) 200; 150
• C) 0; 150
• D) 250; 0
• E) 150; 150

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Definitions:

Tax-exempt State Bonds

Bonds issued by state or local governments that offer investors the benefit of receiving interest payments that are exempt from federal income tax.

Gross Income

The total income from all sources before deductions, taxes, and expenses.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace, determined by supply and demand.

Property Taxes

Taxes paid by property owners based on the assessed value of their real estate.