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 CO2 emissions is measured in tons) describes the economic concept of
A) using assumptions to simplify.
B) ceteris paribus.
C) marginal thinking.
D) rational self interest.

Question

Quizplus · Accepted Answer

The economic concept being described is the marginal cost of abating one ton of CO2 emissions, which is a form of marginal thinking - considering the additional cost required to achieve a specific outcome (in this case, the reduction of one ton of CO2 emissions). The other options (using assumptions to simplify, ceteris paribus, rational self interest) do not accurately describe the concept being discussed.

Recall the Application About the Increase in Purchases of Hybrid