Assume That Emissions from Electric Utilities Contribute to Pollution in the Form

question 13

Multiple Choice

Assume that emissions from electric utilities contribute to pollution in the form of acid rain.Which of the following describes how this affects the market for electricity?

• A)The equilibrium in the market is not efficient; the marginal benefit from electricity is greater than the marginal social cost.
• B)A deadweight loss occurs; at equilibrium the additional social cost of production is greater than the additional benefit to consumers.
• C)The equilibrium in the market is not efficient; because of the cost of the acid rain, economic efficiency would be greater if more electricity were produced.
• D)The equilibrium in the market is not efficient; consumer surplus is equal to producer surplus.

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Definitions:

Metanarrative

A overarching story or narrative that provides a culture or society with coherence and meaning, often critiqued in postmodern thought.

Rational Solutions

Solutions derived through logical and systematic methods, typically involving clear, reasoned thinking.

Social Problems

Issues within a society that are recognized by a significant number of people as being concerns or obstacles to the social well-being.

Postmodern Thought

Philosophical movement characterized by skepticism toward grand narratives and ideologies, emphasizing instead the importance of individual experience and the relative nature of truth.