MSC104MSB100200300400500600Quantity (dozens of doughnuts per day)18) The above figure shows the marginal social benefit and marginal social cost curves ofdoughnuts in the nation of Kaffenia. There is no external benefit. What is the marginal benefit tothe citizen of Kaffenia who consumes the 100th dozen doughnuts each day? [5 POINTS]A) $10.00 per dozenB) $8.00 per dozenC) $6.00 per dozenD) $4.00 per dozen19) The above figure shows the marginal social benefit and marginal social cost curves ofdoughnuts in the nation of Kaffenia. What is the marginal social cost to the economy of Kaffeniaof producing the 100th dozen doughnuts each day? [4 POINTS]A) $10.00 per dozenB) $8.00 per dozenC) $6.00 per dozenD) $4.00 per dozenMarginal cost and marginal benefit(dollars per dozen)

18) The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. There is no external benefit. What is the marginal benefit to the citizen of Kaffenia who consumes the 100th dozen doughnuts each day? [5 POINTS] A) $10.00 per dozen B) $8.00 per C) $6.00 per dozen D) $4.00 per dozen dozen 19) The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social cost to the economy of Kaffenia of producing the 100th dozen doughnuts each day? [4 POINTS] A) $10.00 per dozen B) S8.00 per dozen C) $6.00 per dozen D) $4.00 per dozen

18) The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. There is no external benefit. What is the marginal benefit to the citizen of Kaffenia who consumes the 100th dozen doughnuts each day? [5 POINTS] A) $10.00 per dozen B) $8.00 per C) $6.00 per dozen D) $4.00 per dozen dozen 19) The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social cost to the economy of Kaffenia of producing the 100th dozen doughnuts each day? [4 POINTS] A) $10.00 per dozen B) S8.00 per dozen C) $6.00 per dozen D) $4.00 per dozen

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. Suppose that on a campus, girls' demand for an air freshener is P 10 - Q, and boys' demand is P = 10 - Q. The supply for the air freshener is P = 5+Q. (a) Suppose that the air freshener is a private good. Write down the combined demand of girls and boys for the air freshener. What would be the equilibrium quantity of air freshener traded? at what price? (b) Now suppose that the air freshener is a public good. Write down the combined demand of girls and boys for the air freshener. What would be the equilibrium quantity of air freshener traded? at what price?
Part d-g
2) The following table shows how the marginal benefit of a service varies for five consumers. a) Derive the demand curve for this service assuming that it is a public good. b) If marginal cost of the good is 850, what is the efficient output of the public good? c) If marginal cost of the good is 425, what is the efficient output of the public good? d) If marginal cost of the good is 850, what is the efficient output assuming it is private good?
2. Given the demand function of motorcycle: Q = 500 – 100P where Q is total quantity demanded (unit: 10,000) and P is daily price (in unit of US$). (1) If the current daily price is US$1.0, please find the total quantity demanded. (2) If the external costs of motorcycle ($2) are all internalized, what would be the total quantity demanded? (3) Please also discuss impacts of this internalization policy on supply, demand and public infrastructures.
E8
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