are debating how many to watch. Here is their willingness to pay for each film: Dwayne First film Second film Third film Fourth film Fifth film $7 6 5 4 3 Javier Salman Chris $3 $5 4 3 2 1 2199 $2 1 0 a a 0 a. Within the dorm room, is the showing of a movie a public good? Why or why not? b. If it costs $8 to stream a movie, how many movies should the roommates stream to maximize total surplus? c. If they choose the optimal number from part.(b) and then split the cost of streaming the movies equally, how much surplus does each person obtain from watching the movies?

are debating how many to watch. Here is their willingness to pay for each film: Dwayne First film Second film Third film Fourth film Fifth film $7 6 5 4 3 Javier Salman Chris $3 $5 4 3 2 1 2199 $2 1 0 a a 0 a. Within the dorm room, is the showing of a movie a public good? Why or why not? b. If it costs $8 to stream a movie, how many movies should the roommates stream to maximize total surplus? c. If they choose the optimal number from part.(b) and then split the cost of streaming the movies equally, how much surplus does each person obtain from watching the movies?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1
What is a market-failure rationale for the government investing in transportation and infrastructure, for example roads, highways, bridges and tunnels? a. Government policy acts to correct for the under-provision of private goods by the private, unregulated market. b. Government policy acts to correct for the over-provision of private goods by the private, unregulated market. c. Government policy acts to correct for the over-provision of public goods by the private, unregulated market. d. Government policy acts to correct for the under-provision of public goods by the private, unregulated market.
Which of the following is a characteristic of a public good? a. It is excludable. b. It is nonrival in consumption. c. It yields substantial spillover costs. d. The private sector would produce a larger than socially optimal quantity. e. Private-sector producers would realize too great a profit.
Solve part d,e and f. (f)What does this problem teach you about the optimal provision of public goods?
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5) Mr. Leon is at it again! He vandalized a public park. Now society has to clean it up. Based on the numbers below what would be the socially optimal amount that should be cleaned up? % cleaned total benefits total costs 25 $10,000 $1,000 50 $15,000 $4,000 75 $18,000 $7,000 100 $19,000 $10,000 *Show the marginal benefits and marginal costs, graphically.
Choose and answer only for two questions 1. Explain in detail on four theories of consumer behavior 2. Describe in detail the main characteristics of public goods
Which of the following statement about public goods is FALSE? Question 21Answer a. Public goods are provided by the government b. All of the statement are true c. The environment is a public good d. Public goods are freely accessible e. Many people can simultaneously benefit from a public good
The net benefit to society from reducing pollution is equal to Select one: a. the additional benefit plus the additional costs. b. the quantity of pollution, such as the tons of reduction in sulfur dioxide. c. the sum of the benefits of reducing pollution and the costs. d. the difference between the benefits of reducing pollution and the costs.
Public goods:a. Please explain public goods. b. Please explain their characteristics. c. Please give 2 examples of public goods, including why those examples best fit your definition.