Assignment # 8

Assignment # 8 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 2 Private and External Cost 1. With no pollution control, calculate the quantity of electricity produced, the price of electricity, and the marginal external cost of the pollution generated.