130 ve beenbew suc 4. Four roommates are planning to spend the weekend in their dorm suite watching old latsiond 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 figos Paul $5 $4 $3 $2 $1 1 Toiler13 sul slag George $3 $2 $1 $0 $0 Ringou $2 $1 $0 d $0 $0 2heo TETUA (6 thoug aduc ton onderd amallabivora temovog stanob wW S 2159712 vi sil e. Suppose they agree in advance to choose the efficient number of movies and split the cost based on willingness to pay. Does John have an incentive to tell the truth? Why or why not?

130 ve beenbew suc 4. Four roommates are planning to spend the weekend in their dorm suite watching old latsiond 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 figos Paul $5 $4 $3 $2 $1 1 Toiler13 sul slag George $3 $2 $1 $0 $0 Ringou $2 $1 $0 d $0 $0 2heo TETUA (6 thoug aduc ton onderd amallabivora temovog stanob wW S 2159712 vi sil e. Suppose they agree in advance to choose the efficient number of movies and split the cost based on willingness to pay. Does John have an incentive to tell the truth? Why or why not?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

There are three industrial firms in a town Firm Initial Pollution Level Cost of Reducing Pollution by 1 Unit A 30 units $20 40 units 20 units B с $30 $10 The government wants to reduce pollution to 60 units, so it gives each firm 20 tradable pollution permits. 1. Who sells permits and how many do they sell? Who buys permits and how many do they buy? Briefly explain why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation? 2. How much higher would the costs of pollution reduction be if the permits could not be traded?
firms matter for efficiency? Explain. 9. There are three industrial firms in Happy Valley. Initial Pollution Cost of Reducing Firm Level Pollution by 1 Unit A 30 units $20 В 40 units $30 C 20 units $10 The government wants to reduce pollution to 60 units, so it gives each firm 20 tradable pollution permits. a. Who sells permits and how many do they sell? Who buys permits and how many do they buy? Briefly explain why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation? b. How much higher would the costs of pollution reduction be if the permits could not be traded? Answers
2. What is the market approach to consumer protection? What are the problems with the market approach? Explain in detail.
Table 11-6Consider the city of Widgetapolis with only four residents, John, James, Mary, and Lydia. The four residents are trying to determine how many hours to spend in cleaning up the public lake. The table below shows each resident’s willingness to pay for each hour of cleaning. Hours John James Mary Lydia 1 $30 $50 $40 $10 2 25 40 37 9 3 20 30 34 8 4 15 20 30 7 5 9 10 25 6 6 3 0 15 5 7 0 0 5 4 Refer to Table 11-6. Suppose the cost to clean the lake is $40 per hour and that the residents have agreed to split the cost of cleaning the lake equally. If it was decided that the lake will be cleaned for the number of hours that maximizes total surplus of Widgetapolis, how much individual surplus will Mary receive in total? a. $116 b. $15 c. $25 d. -$10
1. 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…
Please note that the red line is marginal cleanup cost
Acres Willingness to Pay (Dollars) Sophia Amber Cedric 10 24 6. 8 18 3. 14 4 3 8. 3. 5. 1 6. 4 1 Consider the town of Springfield with only three residents: Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park. The following table shows each residents' willingness to pay for each acre of the park. Suppose the cost to build the park is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield? O 4 acres О З асгes O 1 acre O 2 acres
17. Which of the following is an example of specific reciprocity? Group of answer choices (pick one) A.The US government thinks the Paris Climate accord is a bad deal, so it withdraws B.The European Union is unhappy that the US raised tariffs on steel, so it retaliates with tariffs on Harley-Davidson C.motorcycles and Kentucky bourbon D.For many years, WTO members refused to admit Russia to the WTO because its trade history suggested it was an unreliable trading partner E.All of the above F.None of the above
- My O 4 Schol 15909/quizzes/855329/take 1. Concepts & Price (5) OX₁ OS OX OD % Refer to Graph 3 below. Which curve represents the marginal private benefit? Graph 3 Help O Pa 5 A XX- 930 .C 40 6 C P 4 & 7 8 lyp MOX 4+ 8 Maket for the product of wwater polluting firm Quantity Chat 144 9 O htt C
Briefly mention what is the social discount rate?
Typed plzzzz And Asap
3. Some have argued that diversity in communities and schools leads to positive externalities. What implications does this view have for the efficiency of a Tiebout equilibrium? What implications does it have for government policy?