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Do Homework- brooke Kelsey-Google Chrome e Secure I https//www.mathol.com/Student/PlayerHomeworkaspx?homeworkld-4633911138questionld 48flushed- EC 350 MyEconLab Spring 2018 Section 2 Homework: Chapter 4 Homework Score: 0 of 1 pt Critical Thinking 1.2 Save 1W Score: 81.16%, 18.67 of 23 pts , Question Help * 6of23(19complete) A coal-fired electric utity has a capacity of producing 500MW of electnicity every month. To maximize its profit, the firm produces 400MW of electricity in a month. Kevin Peters, the president of an environmental advocacy group, claims that the production at this utility is inefficient and should be reduced by 200MW. The Environmental Protection Agency (EPA), however has a different opinion. Although the EPA agrees that production needs to be reduced, it claims that the electric ublity need not reduce production by as much as 200 MW Which of the following, if true, would support the EPA's view? O A. Representatives of the electric utlity lobby believe that production is efficient at 400 MW O B. During a press release, the electric utility's board of directors expressed interest in opening up two more power plants O C. The worker's union has submitted a pettion to the EPA regarding the number of workers who would be laid off it O D. The demand for electricity generated by this uility has recently increased because of rapid industrialization in the 0 E. The analysis of the environmental advocacy group overstated the damage caused by the coal-red plants in adjacent towns production is reduced by 100MW every month region Click to select your answer and then click Check Answer. Clear All All parts showing Type here to search

Explanation / Answer

The correct option is E

(E) The analysis of the environmental advocacy group overstated damage caused by the coal-fired plants.

because the president of an environmental advocacy group claims that the production of utility is inefficient and should be reduced by 200MW. The marginal social cost of generating the last 200MW of electricity is higher than is higher than the marginal benefits to the consumers.

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