52. (Table: Street Cleanings) Use Table: Street Cleanings. Suppose that the marginal cost of each street cleaning is $18. Which statement is TRUE? Table: Street Cleanings Number of Street Cleanings per Month 0 1 4 5 Peter's Wendy's Total Total Benefit Benefit $0 10 18 24 28 30 $0 8 15 21 26 30 O If Wendy and Peter were the only people in society, the efficient number of street cleanings would be at least two per month. ○ If Wendy and Peter were the only people in society, the efficient number of street cleanings would be one per month. ○ If the city decided to clean the streets only once per month, Wendy would be willing to pay the entire cost of the cleaning. O If the city decided to clean the streets only once per month, Peter would be willing to pay the entire cost of the cleaning.

52. (Table: Street Cleanings) Use Table: Street Cleanings. Suppose that the marginal cost of each street cleaning is $18. Which statement is TRUE? Table: Street Cleanings Number of Street Cleanings per Month 0 1 4 5 Peter's Wendy's Total Total Benefit Benefit $0 10 18 24 28 30 $0 8 15 21 26 30 O If Wendy and Peter were the only people in society, the efficient number of street cleanings would be at least two per month. ○ If Wendy and Peter were the only people in society, the efficient number of street cleanings would be one per month. ○ If the city decided to clean the streets only once per month, Wendy would be willing to pay the entire cost of the cleaning. O If the city decided to clean the streets only once per month, Peter would be willing to pay the entire cost of the cleaning.

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

R Imagine that it costs $40 in the United States to produce one ton of soybeans and transport them to market, while it costs $30 in Brazil to produce one ton of soybeans and transport them to market Imagine that it costs $20,000 in the United States to produce one automobile and transport it to maket, while costs $10,000 in Brazil to produce one automobile and transport it to market. Which of the following four arrangements would be most efficient? (Hint: Derived OC from PPF (production) = 1/OC derived from costs to make ) a. The United States should produce everything, since it can produce both soybeans and automobiles better than Brazil can produce them. Ob. Brazil should specialize and produce only automobiles. The United States should specialize and produce only soybeans. Then the two countries should trade with each other. Brazil will send automobiles to the United States, while the United States sends soybeans to the Brazil. Oc. The United States should specialize and produce…
6. (External Costs with Variable Technology) Think of an industry that pollutes the water and has access to vari- able technology for reducing that pollution. Graphically illustrate and explain the impact of each of the follow- ing, other things constant, on the optimal level of water quality:a. New evidence is discovered about a greater risk of cancer from water pollution.b. The cost of pollution-control equipment increases.c. A technological improvement reduces the cost of pol- lution control.
(Figure: The Socially Optimal Quantity of Emissions from Coal Production) Use Figure The Socialy Optimal Quarety of Emissions from Coal Production in the figure, firms are the only beneficiaries of polution, and costs are borne solely by others in the society. Without government intervention Marginal social cost, marginal social benefit MSC of pollution MSB of pollution Quantity of pollution emissions (tons) O The outcome cannot be determined without more information Orms will continue to polute until the marginal benefit to them is $200 O firms will continue to pollute until the marginal benate to them is zero. O the quantity of pollution will be optimal.
(Table: City Sanitation in Winnetka) Use Table: City Sanitation in Winnetka. Suppose that the marginal cost of each street cleaning is $6. How many street cleanings will there be? Table: City Sanitation in Winnetka Number of Street Cleanings 10 1 2 3 14 QUESTION 29 5 05 03 2 Edwin's Total Benefit Geraldine's Total Benefit $0 10 18 24 28 30 $0 18 15 21 26 30
Antonio and Caroline are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Alfalfa Barley (Bushels per acre) (Bushels per acre) Antonio 40 8 Caroline 28 7 ___________has an absolute advantage in the production of alfalfa, and __________ has an absolute advantage in the production of barley. Antonio's opportunity cost of producing 1 bushel of barley is ____ bushels of alfalfa, whereas Caroline's opportunity cost of producing 1 bushel of barley is______ bushels of alfalfa. Because Antonio has a ______ opportunity cost of producing barley than Caroline,________ has a comparative advantage in the production of barley and_______ has a comparative advantage in the production of alfalfa.
6 Assume that you are a rational person and that you visit a grocery store to buy bananas. Use the marginal benefit and marginal cost (utils) principle, described in Unit 1, to explain how many bananas you will ultimately buy.
(Table: Customer Valuations for Lawn Services I) The table shows customer valuations for different lawn services. Consumer Valuations per Season Lawn Cutting Fertilizing $ 800 $400 1,000 250 Consumer Ben Ethan The marginal cost of lawn cutting is $400, and the marginal cost of fertilizing is $200. Suppose the lawn service prices its services separately. In this case, the company should charge $ for fertilizing. O 250 800 600 Bundle $1,200 1,250 400
INTR.27 A city is debating whether or not to build a new park. The city owns the land, having purchased it 50 years ago for $25,000. A local restaurant developer has offered $700,000 for the land. The development costs for the park would be $100,000. What is the minimum amount of the benefits for the park development in order to be rational for the city? a $100,000 b $125,000 c $800,000 d $825,000
315553/quizzes/3862261/take Course Placement CT CT2Learn Assume that our world consists of only two countries: the United States (US) and the Rest of the World (ROW). Both of these countries produce airplanes and computers. The amounts of each good produced during an hour in each country are provided in the table below. US Airplanes 5 Computers 15 In computers? P In-Text Citations ▸ Study.com G Google in the US? ROW 1. Based on this table, who has the absolute advantage in airplanes? in the ROW? 4 10 1. What is the opportunity cost of 1 airplane: computers per airplane Q Search computers per airplane What is the opportunity cost of 1 computer in the US? airplanes per computer PRE - ParentVUE SAM SAM y! Infor W @=
6. Suppose the United States can produce cattle or corn with a given amount of resources. Attached is a graph depicting the production possibility frontier for the United States and the marginal benefit and cost of a bushel of corn. You are asked to discuss the relationship between the marginal cost and marginal benefit of corn and the production of both corn and cattle. Production Possibility Frontier MC $9 40 30 B 20 3 MB 10 15 20 10 15 20 Bushels of Corn Quantity of Bushels of Corn (in billions) (in billions) (a) Determine whether there is an overallocation of resources, underallocation of resources, and optimal allocation of resources. For example, at 10 billion bushels of corn production, what are the marginal cost and marginal benefit? MB: Do they meet the marginal principle of MB=MC? (Yes, No) If not, what problem happens? There an ( underallocation, overallocation ) of resources to corn production. MC: Similarly mention in case of at 15 billion bushels and 20 billion bushels.…
4. Equality versus efficiency All societies face a trade-off between efficiency and equality. If the government lowers income taxes on Americans in the top one percent of earners, while decreasing welfare payments to citizens with incomes below the federal poverty threshold, the most likely result is in equality in the United States. in efficiency and Match each definition to its appropriate concept. Definition When a society gets the most it can from its scarce resources When economic benefits are distributed uniformly across society Efficiency Equality
3. Voluntary contributions toward a public good Clancy and Hubert are considering contributing toward the creation of a water fountain. Each can choose whether to contribute $400 to the water fountain or to keep that $400 for a cell phone. Since a water fountain is a public good, both Clancy and Hubert will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.80 of benefit. For example, if both Clancy and Hubert choose to contribute, then a total of $800 would be contributed to the water fountain. So, Clancy and Hubert would each receive $640 of benefit from the water fountain, and their combined benefit would be $1,280. This is shown in the upper left cell of the first table. Since a cell phone is a private good, if Clancy chooses to spend $400 on a cell phone, Clancy would get $400 of benefit from the cell phone and Hubert wouldn't receive any benefit from Clancy's choice. If Clancy still…