5.. "Since a public good is enjoyed by all members of society, willingness to pay for thegood will not diminish as the amount produced increases." Evaluate and use anexample to support your answer.This statement is (correct incorrect). Public goods face (increasing, constant, diminishing ) returnslike any other good. Consider the number of highways in a town, for example. Citizens of a town arevery willing to pay for the first highway, as it produces large gains to the town. Successive highwaysproduce (more and more, less and less ) willingness to pay because the citizens face lower and lowergains from the increased number of highways. In a town of, say 20,000, 15 highways (would, wouldnot) produce much more benefit than just 2 or 3 highways because of ( increasing, constant,diminishing ) returns.

Public goods are goods which are non rival: consumption by one does not affect consumption by…

Answered: 5.. "Since a public good is enjoyed by…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. In this question we will combine a very simplified model of an externality that has long-lasting impacts with the model of discounted utility that we learned in our game theory topic. Consider a hypothetical environmental externality: produced as the byproduct of industrial activity, each unit of emission of a pollutant that is emitted once, today, causes $10 of external harm to society each and every year, starting immediately, forever. Let's say that policymakers apply a discount factor of 8 € (0, 1) to future gains and losses, in an analog of the discounted utility model except for cash payoffs rather than utilities. What would the socially efficient Pigouvian tax on the emission of this pollutant be if we applied a discount factor of (i) 8 = 0.5, (ii) 6 = 0.9, and (iii) 8 = 0.99? Give an intuitive explanation of how to interpret the parameter & in this context, and explain precisely but in simple terms what the goal and effect of the Pigouvian tax would be.
Problem 05-01 (algo) On the basis of the three Individual demand schedules in the following table, and assuming these are the only three people in the society, determine a. the market demand schedule on the assumption that the good is a private good and b. the collective demand schedule on the assumption that the good is a public good. Instructions: Enter your answers as a whole number. Individual 1 Individual 2 Individual 3 (a) Private Demand (b) Public Demand Price Qd Price Qd Price Qd Price Qd Price Qd $8 0 $8 1 $8 0 $8 1 1 7 0 7 2 7 0 7 2 2 6 0 6 3 6 1 в 4 3 5 1 5 4 5 2 5 7 4 4 2 4 5 4 3 4 10 5 3 3 3 в 3 4 3 13 в 2 4 2 7 2 5 2 16 7 1 5 1 8 1 6 1 19 8
When economists say that one of the characteristics of a Public Good is that it is “non-excludable”, they mean: Select one: a. that the government makes the good widely available to virtually anyone in the economy. b. the good’s price is so low that virtually anyone can afford it. c. that once the good is supplied, it is difficult to prevent those who do not pay for it from consuming the good. d. that once a unit of the good is provided, it can be jointly consumed by more than one consumer at the same time.
1. Melissa, a physical therapist, develops a stretching routine that relieves back pain. Her clients can perform this routine without diminishing others’ ability to perform the routine, which implies that Melissa’s stretching routine is… rival non-rival excludable a common-resource good
Parks confer many external benefits on society: open space, trees that reduce pollution, and so on. Therefore, the market equilibrium quantity of parks is not equal to the socially optimal quantity. The following graph shows the demand for parks (their private value), the supply of parks (the private cost of producing them), and the social value of parks, including both the private value and external benefits. Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially optimal quantity.
2. Last year, nearly 200 countries agreed on a plan to limit greenhouse gas emissions, in an effort to limit climate change. One of the challenges in creating such a plan is that climate change is a global phenomenon, depending on total emissions from all countries. Which of the following best describes the benefits of a plan that reduces global warming? a. It's a common pool resource; countries will tend to contribute too much to global warming efforts b. It's a public good; countries will tend to contribute too much to global warming efforts C. It's a common pool resource; countries will tend to contribute too little to global warming efforts d. It's a public good; countries will tend to contribute too little to global warming efforts e. None of the above
4. Suppose the supply curve of portable radio rentals in Golden Gate Park is given by P= 5+ 0.1Q and the demand curve is by P = 20 -0.2Q. a. If each portable radio imposes $3 per day in noise costs on others, by how much will the market equilibrium quantity exceed the socially optimal number of rentals? b. How would the imposition of a $3 per unit tax affect the efficiency in this market?
We recognize four types of goods, namely; private goods, public goods, club goods, and shared resources. Roads are an example of a public good. When the congestion gets worse, will the roads remain public goods or turn into club goods or common goods? Explain
Define a public good. Give an example of a public good using your definition. Explain how to construct the market demand curve for a public good.

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