Recall the Application about the increase in purchases of hybrid vehicles to answer the following question(s) .
-According to the Application, the average cost of abating one ton of CO₂ emissions through the hybrid subsidy is $177, but a switch from coal to natural gas in power plants would reduce CO₂ emissions at less than one-third the cost of the hybrid subsidy. The increase in cost associated with the reduction of one ton of CO₂ emissions (assuming that each unit of CO₂emissions is measured in tons) describes the economic concept of

Question

Quizplus · Accepted Answer

The increase in cost associated with the reduction of one ton of CO2 emissions is a marginal cost, which is a fundamental economic concept in decision-making that deals with small, incremental changes in costs and benefits. In this case, the marginal cost of reducing CO2 emissions through the hybrid subsidy is $177, while the marginal cost of reducing CO2 emissions by switching from coal to natural gas is less than one-third of that amount. Therefore, by comparing the marginal costs of different alternatives, policymakers can make more informed decisions about how to allocate resources efficiently to achieve their environmental goals.

Recall the Application About the Increase in Purchases of Hybrid