Answered: 2. Classify each of the following items…

2. Classify each of the following items as a public good, a private good, a natural monopoly good, or a common resource, and explain your classification. A car licence

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter18: Public Economy

Section: Chapter Questions

Problem 6SCQ: Anastasia, Emma, and Greta are deciding what to do on a weekend getaway. They each suggest a first,...

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7 This figure below shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive. 1 Sarah points Lew Effont High Effert 00:40 25 Low Effort Joe High Effon The outcome of the game in the figure shown will be: Multiple Choice Joe puts forth high effort and Sarah puts forth low effort. Joe puts forth low effort and Sarah puts forth high effort. Joe and Sarah both put forth low effort. Joe and Sarah both put forth high effort.
Demand: Thinking Like a Buyer — End of Chapter Problem The marginal benefit received for each gallon of gasoline consumed per week for Ang, Tony, and Gianna are provided in the accompanying table. a. On the first graph, move the points to plot an individual demand curve for each person. b. Assuming there are only these three people in the market, create the market demand curve for gasoline on the second graph. Move each of the points of the market demand curve provided to plot the appropriate market demand according to the dataset provided. Gallons consumedper week Ang’s marginal benefit Tony’s marginal benefit Gianna’s marginal benefit 1 $7 $4 $8 2 $5 $3 $6 3 $3 $2 $4 4 $1 $1 $2
Demand: Thinking Like a Buyer — End of Chapter Problem The marginal benefit received for each gallon of gasoline consumed per week for Ang, Tony, and Gianna are provided in the accompanying table. a. On the first graph, move the points to plot an individual demand curve for each person. b. Assuming there are only these three people in the market, create the market demand curve for gasoline on the second graph. Move each of the points of the market demand curve provided to plot the appropriate market demand according to the dataset provided.
1. Road construction is going on Riccarton Road. 100 Uber drivers want to drop their passengers at the airport. Each driver is deciding whether to take Riccarton Road or take Blenheim Road. The cost of travelling through Riccarton Road is $10 (additional fuel required due to slow traffic), while the Blenheim Road route has a low fuel cost (theoretically let's assume $0) but takes more time to reach the airport. In deciding on a route, each driver cares only about income, denoted i, and his travel time, denoted t (where we have made the dollar value of one unit of travel time equal to 1). Driver's payoff is assumed to be his/ her profit (income - cost of travelling, including travel time). Assume that each driver has same income of $500. If m drivers are on Riccarton Road, the travel time for a driver on Riccarton Road is assumed to be m (in dollars). In contrast, if m drivers take Blenheim Road, the travel time for those on the Blenheim Road is 2m (again, in dollars). Drivers make…
les of Microeconomics - Spring21 The table below shows the demand schedules for pizza for Abby and Barry who are the only buyers in the market. Abby's quantity Barry's quantity Price (dollars per slioe) demanded demanded (slices per month) (slices per month) 2.50 25 50 3.00 20 40 3.50 15 30 4.00 10 20 4.50 10 5 00 Based on the table, what is the marginal social benefit from the 45th slice of pizza? Select one: O a. $3.50 O b. $3.25 O c. $0.50 Od. $9
Which core principle is represented in this scenario? If the price of a candy bar is $3 how many should you buy? Explanation
D A В Refer to the diagram. Assume that the horizontal axis measures the quantity of a good and the vertical axis measures the marginal-benefit and marginal cost of the good. Assuming that the good represented here has at least some positive behefits and costs, which line(s) represent(s) a possible marginal-benefit curve?
15. Identify what type of goods each of the following items are: A. Private Good B. Public Good 1. National Defense 2. Tickets to a baseball game
the table below reflects the marginal benefit Kim and Jeremy place on each additional coke- their first second, etc. Below fill in the market demand schedule for coke. Coke Marginal Benefit(WTP) Kim Jeemy 1" $L.0 $200 :13 SO.75 $155 :13 S0.15 SO00 3,15 ŞO.00 Ş.00 0 Demand Schedule Price Q $200 $150 $100 $0.50
2. Individual demand and consumer surplus Consider the market for electric vehicles. The market price of each electric vehicle is $135,000, and each consumer demands no more than one electric vehicle. Suppose that Tim is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $270,000. Based on Tim's willingness to pay, the following graph shows his demand curve for electric vehicles. Shade the area representing Tim's consumer surplus using the green rectangle (triangle symbols). PRICE (Thousands of dollars) 360 t 315 PRICE (Thousands of dollars) 270 225 100 135 12 Homework (Ch 07) Now, suppose another buyer, Alyssa, enters the market for electric vehicles, and her willingness to pay is $180,000. 300 Based on Alyssa's and Tim's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Tim's consumer surplus using the green rectangle (triangle symbols), and shade…
PRICE (Dollars per unit) 24 20 16 co Refer to Figure 10-6. In order to reach the social optimum, the government could O a. impose a tax of $8 per unit on plastics. O b. impose a tax of $2 per unit on plastics. c. impose a tax of $6 per unit on plastics. O d. offer a subsidy of $6 per unit on plastics. Figure 10-6 100 Social Cost Supply Demand 200 300 400 500 QUANTITY (Units of plastic) 600
Lucinda collects Kewpie dolls, and can afford to buy up to six dolls. The table below describes the marginal benefit Lucinda gets for each additional doll she adds to her collection. Lucinda's Marginal Benefit of Kewpie Dolls Marginal Benefit (dollars) $15 14 13 12 11 10 Kewpie Dolls 1 2 3 4 5 6 4 Instructions: Enter your answers as a whole number. a. If the price of Kewpie dolls is $11 per doll, how many dolls would Lucinda buy if she is rational? 4 doll(s) b. If the price of Kewpie dolls rose to $12 per doll, how many dolls would Lucinda buy if she is rational? 3 doll(s)