Much of the nation's 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?

answer; ///decision making under risk;

answermarginal cost;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.