Answer to Question #55288 in Microeconomics for edrian
a.) Draw a completely labeled graph and illustrate on the graph how much higher electricity prices would be if the full costs of electricity production were taken into account. You do not need to provide actual numbers; rather, show on the price axis where the price would be before the externality is considered and where the price would be after the externality is considered.
b.) What problems might exist in determining this new, externality-based price?
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