not yet answered points out of 1.00 flag question\nmuch of the nations coal is extracted by strip mining…

not yet answered points out of 1.00 flag question\nmuch of the nations coal is extracted by strip mining. this process leaves a huge barren hole in the ground when complete, and the cost of replanting the trees is approximately $10 per ton of coal. burning the coal for electricity causes air pollution. no one knows how much damage the air pollution causes, but we know that for another $10 per ton the power plant can be outfitted with a pollution control device. what is one measure of the true social cost of coal fired electricity, in dollars per ton?\nselect one:\na. private marginal cost plus the $10 replanting charge.\nb. private marginal cost plus the $20 of replanting and emission control charges.\nc. private marginal cost plus the $10 emission control charge.\nd. only the $20 of replanting and emission control charges, because the other costs are private, not social.

not yet answered points out of 1.00 flag question\nmuch of the nations coal is extracted by strip mining. this process leaves a huge barren hole in the ground when complete, and the cost of replanting the trees is approximately $10 per ton of coal. burning the coal for electricity causes air pollution. no one knows how much damage the air pollution causes, but we know that for another $10 per ton the power plant can be outfitted with a pollution control device. what is one measure of the true social cost of coal fired electricity, in dollars per ton?\nselect one:\na. private marginal cost plus the $10 replanting charge.\nb. private marginal cost plus the $20 of replanting and emission control charges.\nc. private marginal cost plus the $10 emission control charge.\nd. only the $20 of replanting and emission control charges, because the other costs are private, not social.

Answer

Brief Explanations:

True social cost includes private costs plus all external (social) costs. Here, the $10 replanting cost and $10 pollution control cost are both uncompensated social costs from coal production/use, so they are added to the private marginal cost.

Answer:

b. Private marginal cost plus the $20 of replanting and emission control charges.