a. Draw the marginal private cost of irrigation on the graph.Instructions: Use the tool provided (MCpvt) and plot only the two endpoints across the entire range of output (0-100).b. Draw the marginal social cost of irrigation on the graph.Instructions: Use the tool provided (MCsocial) and plot only the two endpoints across the entire range of output (0-100).c. A U.S. farmer will irrigateacresd. The efficient level of irrigation isacres The figure below shows the demand curve for a U.S. farmer for irrigating his land. It costs $100 per acre to irrigate the land.Each acre of land irrigation generates salty runoff that winds up in the Colorado River. It costs $50 to desalinate this river water soMexican farmers can irrigate their crops.Price ($)2752502252001751501251007550250DMBMB sed10 20 30 40 50 60 70 80 90 100110120Irrigation (acres)Tools(2)MCpvtMC social

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a. Draw the marginal private cost of irrigation on the graph. Instructions: Use the tool provided (MCpvt) and plot only the two endpoints across the entire range of output (0-100). b. Draw the marginal social cost of irrigation on the graph. Instructions: Use the tool provided (MCsocial) and plot only the two endpoints across the entire range of output (0-100). CA U.S. farmer will irrigate acres d. The efficient level of irrigation is acres

a. Draw the marginal private cost of irrigation on the graph. Instructions: Use the tool provided (MCpvt) and plot only the two endpoints across the entire range of output (0-100). b. Draw the marginal social cost of irrigation on the graph. Instructions: Use the tool provided (MCsocial) and plot only the two endpoints across the entire range of output (0-100). CA U.S. farmer will irrigate acres d. The efficient level of irrigation is acres

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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subject:eco
32 28 Social Cost 24 20 Private Cost 16 12 8 Demand 4 100 200 300 400 500 a. How many units of good are produced at the market equilibrium3 b. How much is the external cot for each unit of good produced? c. How many units of good should be produced at the social optimum? d. In order to reach the social optimum, what should the government do?
What is the difference between private and social costs?
Suppose Troutsville (population of 4) wants to put on a firework display. Leslie would get $40 worth of benefit, Mark would get $30 worth of benefit, Maggie would get $20 worth, and Erika would get $10 worth. What is the socially efficient amount to spend on the display? a. $25, the average of their benefitsb. $10, the minimum of their benefitsc. $40, the max of their benefitsd. impossible to telle. $100, the sum of their benefits
Suppose that the government decides to issuetradable permits for a certain form of pollution.a. Does it matter for economic efficiency whether thegovernment distributes or auctions the permits?Why or why not?b. If the government chooses to distribute thepermits, does the allocation of permits amongfirms matter for efficiency? Explain.
The graph shows the unregulated market for electricity. Suppose that at every quantity produced, the marginal external cost of electricity equals the marginal private cost of production. To show the market outcome, draw the following four items on the graph: 1. Draw a point to show the marginal social cost when the utility produces 500 kilowatts per day. Label it 1. 2. Draw the marginal social cost curve. Label it MSC . 3. Draw a point to show the electricity produced and its marginal social cost. Label it 2. 4. Draw a shape to show the deadweight loss created. Label it DWL . >>> Draw only the objects specified in the question.
There are two fishermen, Zach and Jacob. They would each benefit if lighthouses were built along the coast where they fish. The marginal cost of building a lighthouse is $100. The marginal benefit that Zach gets from each lighthouse is 90 - Q, where Q is the number of lighthouses. The marginal benefit that Jacob gets from each lighthouse is 40 - Q. 1. What is the efficient number of lighthouses? 2. What is Zach's marginal benefit of lighthouses at the efficient quantity? 3. Would Zach have been willing to pay for the last additional lighthouse at the efficient quantity? a) Yes b) No
Why is it socially efficient to set marginal benefits equal to marginal costs rather than abating until total benefits equal total costs?
Some economists claim that grinding poverty and impatience impel people to strive for immediate gain, forgetting long-term environmental sustainability. You are an Environmental Economist in the Ministry of the Environment and Beautification in your local country, and you are tasked with holding a team meeting and the Chief Economist has given the following guidelines:C. indicates what approaches government / society can take to spur poor people to behave responsibly toward the environmentD add in a diagram of Kuznet curve and any diagram that shows relation to the statement and topic
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.
Are socially efficient level of emission and market efficiency is equal? Explain with help of diagram?
Consider the market for fire extinguishers.a. Why might fire extinguishers exhibit positive externalities?b. Draw a graph of the market for fire extinguishers, labeling the demand curve, the social-value curve, the supply curve, and the social-cost curve.c. Indicate the market equilibrium level of output and the efficient level of output. Give an intuitive explanation for why these quantities differ.d. If the external benefit is $10 per extinguisher, describe a government policy that would yield the efficient outcome.