11.05 Unanswered • 2 attempts left Bailey has a dog whose loud barking upsets their neighbour, Harper. Assume that the benefit Bailey gets from the dog is $600 and that Harper incurs a cost of $800 from the dog's barking. If Bailey has the legal right to own the dog what is a private solution for this issue? Harper pays Bailey $599 to give the dog А away. Harper pays Bailey $700 to give the dog В away. Bailey pays Harper $700 to compensate C for her dog's barking. A private solution that improves this D scenario is not possible.
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- 500 450 The graph on the right may help in answering question 25 400 350 300 250 200 150 100 50 O 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Quantity Demand MC Exter nality MC private MC Social A competitive tire manufacturing industry spews emissions into the air at47 per tire a marginal cost of 1.5-q, where q is the quantity of tires produced per month (in thousands). The industry marginal cost, excluding the cost of emissions (private marginal cost), is 4 + 4•q, expressed in $ per tire. The inverse demand curve for tires is p = 480 - 3-q, also expressed in $ per tire. In order to achieve the socially efficient level of tire production, which takes into account the optimal level of air pollution, the government levies a tax on the industry. What is the efficient pollution tax? $84 per tire $101 per tire $152 per tire Price1. Andy lives in an apartment next to Bob. Bob plays loud music, which reduces Andy's enjoyment of the apartment. With no noise, Andy gets $1000 in value from the apart- ment. With noise, Andy gets value of $500. Bob gets $1000 in value from playing his music. He can play quietly so that Andy is undisturbed, but that reduces his valuation by $1300 (so total value -$300). Bob's other option is to stop making playing music entirely. Alternatively, Andy can buy headphones which block out the noise, at a cost of $200. There are thus four possible outcomes 1. Bob plays music loudly, Andy does nothing 2. Bob plays music quietly 3. Bob plays no music at all 4. Bob plays music loudly, Andy gets headphones Consider the following questions: (c) Suppose instead that we are under a damages rule. What will be the outcome? (d) Now suppose that we are back under the property rule, but transaction costs are zero. What will be the outcome (which of (I)-(IV)), and how do you know? (e) What…1. Mel is thinking of going on a cruise. Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50. The probability of nice weather is 60 percent and the probability of bad weather is 40 percent. Trip insurance is sometimes available. If purchased, it allows travelers to delay the cruise until the weather is nice. Suppose that the price of the cruise is $1,200. If Mel is risk-neutral, then Mel should: not buy trip insurance. only buy trip insurance if it costs less than $780. only buy trip insurance if it costs less than $20. only buy trip insurance if it costs less than $50. 2. Several web sites, like Pricewatch.com, allow consumers to input the name of a product, and the site then returns a list of suppliers with their respective prices for the product. This: increases the benefit of search.. increases the free-rider problem. reduces the benefit of search. reduces the cost of search.
- MB, MC 10- 8. 6 4 2. Reference: Ref 16-2 O MB, Select one: A. III B. I MC MB₁ MB3 (Figure 16.2) Lilly, who owns the Cigar Bar and Grill, is considering whether to purchase fire insurance. Without insurance, the marginal benefit of precautions to reduce the risk of fire is given by MB₁. Which of the following statements is (are) TRUE? I. With full insurance, the marginal benefit of acting to reduce the risk of fire is given by MB3. C. II D. I and III 10 II. If Lilly purchases fire insurance, whether it is full or partial coverage, the marginal benefits of acting to reduce the risk of fire will increase. Quantity of actions taken to improve fire protection III. With partial insurance, the marginal benefit of acting to reduce the risk of fire is given by MB₂.4. When handling insects, knowing where the pests are thickest can help save on insecticide usage. But scounting for bugs also comes at a price. Determine the appropriate blend of insect scouting and insecticide to manage your insect issues on the farm. Complete the following worksheet considering the different strategies for soybean production and answer the accompanying questions. The price of insect scouting is $30 per hour and insecticide is $6 per quart. Strategy Scounting (hours) Insecticide (quarts) Input Substitution Ratio Input Price Ratio 1,200 40 600 80 300 D. 120 120 (a) What economic question/opportunity does this address? What is the appropriate decision rule for input substitution? What does that rule to seek to achieve (be more specific than saying "profit maximization")? (b) What is the profit maximizing strategy? What is the cost associated with that strategy? (c) Explain how the input price ratio will change if both input prices decrease from the initial scenario by…Q5 Homework • Unanswered Given these two individual demand curves, what is the equation for the market demand curve for a private good? i. P=200 - 10Q ii. P=200 - (20/3)Q Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a P= 200 - 4Q P=200 - 8.33Q P = 100 - 8.33Q d. P = 100 - 1.67Q Unanswered A Submit
- Your value to live in a quiet apartment is $400. The neighbor living above your apartment makes noise using her treadmill every day. She values running at $500. Your neighbor has the right to run in her apartment. If the proper conditions are met, what does the Coase Theorem suggest is the likely outcome in this case? Your neighbor pays you $401 to continue running. O You tell your neighbor that he Is making too much noise hoping she will stop using her treadmill. O You pay your neighbor $500 to stop running. O Your neighbor continues to run, and you say nothing. A 52. Ans 53. Fo A Moving to another question will save this response. «.< Question 25 of 40 » 54. I sho 55. Suppe 225 Close Window MacBook Air esc 000 F1 F2 F3 000 FA F7 @ 2$ & 2 6. Q W E R T tab А S D F G caps lock %# 3Apolluting firm dumps waste into the ocean during production. The loss in value due to damaging the fish stack is valued at $100,000 (you can think of this as lost profits for fishing firms). The firm could eliminate the pollution at a cost of $60,000 a year. Choose the statement that describes the expected efficient outcome if the polluting firm has property rights over the ocean. The firm continues to pollute The polluting firm pays the $60,000 to eliminate pollution The fishing firms pay the $60,000 to eliminate pollution The polluting firm and fishing firms share the $60,000 cost of eliminating pollution4. Four roommates are planning to spend the weekend in their dorm suite watching old olent atsomos movies, and they are debating how many to watch. The table below contains their willingness to pay for each film. 1st film 2nd film 3rd film 4th film 5th film John $7 $6 $5 $4 $3 Paul $5 $4 $3 $2 $1 an rud bas Vedda nowoc 2102 gulden et 150 yebesnbew sho George $3 $2 $1 $0 $0 (nast il qalihe: 0 sx sig Ringo og $2 $1 $0 $0 $0 Taboog dikdug dan one dorld amasi obivond themsvog srl: asobydw 20607 1610A (b 2)99712 vdio (9 it sins 0.6 d. Is there any way to split the cost so that everyone benefits? What problems arise with this plan?
- Jay is a smoker living in city A. The price for a pack of cigarettes is $6 in city A. The benefit of smoking a pack of cigarettes for Jay is worth $14. Assume that each pack of cigarettes smoked does $6 worth of health damage to the smoker (Jay) in the form of increased cancer risk and $5 worth of health damage to the smoker's neighbors via secondhand smoke. What is the private cost incurred whenever Jay buys a pack of cigarettes (consider all the costs to Jay, including purchase cost and cost of health damage) ? (Please provide one number as the answer, without dollar sign, space, or any other symbol) Is it privately efficient for him to buy a pack of cigarettes at this price? (please input Yes or No, without any other word, symbol or space) What is the public benefit when Jay buys a pack of cigarettes (consider benefits to everyone in the society, in this case, the benefit is to Jay only) ? (Please provide one number as the answer, without dollar sign, space, or any other symbol)…A good is considered a public good if its benefits are as it is consumed and whose benefits Select one: diminished; cannot be withheld Ob. not diminished; can be withheld not diminished; are enjoyed by some. O d. diminished; can be withheld not diminished; cannot be withheld Next page page on this page ype here to search home prt sc F8 LA F5 (*了 F3 F4 & 3.Acres Sophia Amber Cedric 1 $12 $24 $6 2 8 18 3 10 4 3 8 3 1 6. 2 6 4 1 7 2 Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric (see the Table). The three residents are trying to determine how large, in acres, they should build the public park. Suppose the cost to build the park is $12 per acre and that the residents have agreed to split the cost of building the park equally. If the residents vote to determine the size of park to builo basing their decision solely on their own willingness to pay (and trying to maximize their own surplus), what is the largest park size for which the majority of residents would vote "yes?" 1 acre 2 acres 3 acres 4 acres