Question: 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 equals the marginal cost.
Price Quantity Total cost
(cents per kilowatt) (kilowatts per day) (cents per kilowatt)
4 500 10
8 400 8
12 300 6
16 200 4
20 100 2
With no government action to control pollution, what is the marginal social cost of the electricity generated and the deadweight loss created?