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The article talks about positive externalities in relation to hybrid cars. The marginal private cost is higher than the marginal social cost therefore there is an excess demand for P1 price. it then talks about how the government wants to subsidize hybrid cars that are more eco friendly and gas efficient but they aren't that subsidized as other projects are more important such as health care

The article is about how hybrid cars bring positive benefits and promote people to use hybrid cars for many good causes including costs are efficient for the owner because unlike, fuel the prices does not change, environmental friendly and electric motor requires more energy compare to gas so it can speed up more and going up difficult places.

This article discusses the new Chevy volt hybrid and debates it's future. it can be said that the company, in regards to this car, is going to start benefiting from economies of scale as in the article it states that the production cost will become cheaper however it is obvious that the company is not producing at the minimum efficient scale as allegedly for each volt it sells, the company loses $49,000

Currently, the Chevy Volt costs $89,000 per car to produce. However, GM is selling the car at about $40,000, offering even more discounts in certain places to reel in customers. GM argues that in the long run, the production cost will decrease and begin to bring in profit.

This article is an excellent example of the concept of long term vs. short term decision making by a company. Right now, GM is losing massive amounts of money whenever they make and sell another Chevy Volt, but they hope the investment will pay off in the long run.