1.Suppose that elk hunting permits are sold in acompetitive market by landowners who ownproperty where elk reside, and one permit isrequired to harvest each elk. The demand curvefor elk hunting permits is p=180-0.5q. The totalcost to the landowners of allowing q elk to beharvested on their properties is C(q)=0.125q^2 .Draw a graph depicting this scenario. 2. Nowassume there also is an amenity valueassociated with the presence of elk in the forestfor wildlife watching and ecosystem health. Thisis a benefit that accrues to the public at large,not only to the elk hunters or property owners.The external benefits from having Q elkremaining in the forest after each huntingseason is 50Q . There are Q0 elk in the forest atthe beginning of each hunting season, so Q=Q0-q. Draw a graph depicting this scenario.

Given: P = 180 -0.5q C(q) = 0.125q2 Required: Graphs for the scenario.

1.Suppose that elk hunting permits are sold in a competitive market by landowners who own property where elk reside, and one permit is required to harvest each elk. The demand curve for elk hunting permits is p=180-0.5q . The total

1.Suppose that elk hunting permits are sold in a competitive market by landowners who own property where elk reside, and one permit is required to harvest each elk. The demand curve for elk hunting permits is p=180-0.5q . The total

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...

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