Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $20 for the fifth unit of a public good; Kara, $15; and Susie, $35. Government should produce the fifth unit of the public good if the marginal cost is less than or equal to Multiple Choice $15. $35. $5. $70. $20.

Suppose you are in charge of snow removal in your community and you are trying to figure out if you should clear snow on a street. You survey the 20 people that live on that street who say they they each value having snow cleared on their street at $50 per year. The snow removal only costs $600 per year so you hire a snow plow and clear the snow that winter. When you ask for donations to pay for the snow removal you only receive $80. What does this result show?   a   The people on that street were free-riders.   b   The snow removal suffered from the Tragedy of the Commons problems.   c   The snow removal cost must have been greater than their economic benefit.   d   You must have overestimated the value of a fireworks show.     Please suggest me right answer with explanation

There are 1,000 families in a neighborhood that is affected by noise pollution from a local factory. The noise level is within legal limits, but could be reduced further if the company spent $5,000 on technological improvements. The company agrees to make these improvements if the affected families contribute the $5,000. A committee starts to collect donations to pay for the improvements. Which of the following is most likely to occur? A. Because there are relatively few families involved and the individual contribution is so small, all families will voluntarily contribute. B. Because each individual contribution is so small and individuals will benefit from the reduction in noise whether they contribute or not, most people will not contribute and the firm will not make the improvements. C. Even if the families raise the $5,000, the firm will not reduce its noise pollution because it is within legal limits. D. The courts will force the firm to spend the $5,000 regardless of whether or…

What would be the solution?

a)Some advocates of anti-poverty programs claim that fighting poverty is a public good. Explain what these advocates mean by classifying charity as a public good. b)Why do governments tend to run programs that help the poor? Can the private sector be left to run those programs? Discuss your answer by focusing on externalities  and market failure

The social optimum occurs where price is __________ and quantity is __________.

A local government is considering building new public hiking trails in town.Suppose that the trails are public goods. There are two types of people in a smalltown economy, 1000 avid hikers and 1000 non-hikers, who have typical individualmarginal benefit curves: MB_H = 350 − 5Q and MB_N = 240 − 6Q for the hikersand the non-hikers respectively, where Q is the miles of trails. On the same graph,draw the marginal benefit curves for each type of person and MB of the overalleconomy. If the marginal cost providing this public good is $27000 per mile whatis the optimal level of the public good?

Adam and Catherine are choosing between two ice cream shops, Icy and Frosty, located at either end of a 1-mile-long beach. Adam is standing in front of Icy, while Catherine is standing in front of Frosty. Both Adam and Catherine are each willing to pay, at most, $6 for one ice cream cone. It costs them $1 to walk the 1-mile distance between the shops. Icy is government- run, so the price is fixed at exactly $4/cone and will not change. The shops face costs of $o.25/cone. What price should Frosty charge if it is to maximize its total profits from Adam and Catherine?

i)A public good a )costs essentially nothing to produce and is thus provided by the government at a zero price. b)can never be provided by a nongovernmental organization. c) can't be provided to one person without making it available to others as well. d)generally results in substantial negative externalities. ii)The market demand curve for a public good a) shows the total value that all individuals place on each additional unit of the good. b) is derived in the same manner as demand curves for private goods. c)is derived by horizontally summing all individual demand curves. d)shows the total number of units that would be produced by the public sector at each possible price. iii)The market demand curve for a public good a) shows the total value that all individuals place on each additional unit of the good. b)is derived in the same manner as demand curves for private goods. c) is derived by horizontally summing all individual demand curves. d)shows the total number of units…

Suppose you are part of an economic analysis team charged with recommending a policy response to pesticide risks. Explain the steps your team should take and why.