Assume your apartment complex decides to build new open access common area for its residents. Each individual has value for using the common area represented by the following value function: V= 40-0.5Q where Q represents the number of individuals using the common area. The marginal value function is: MV= 40-Q Assume each individual’s opportunity cost of time is $8 [e.g. MC=8]   How many people use the common are at the social optimum? It may be helpful to show your work to calculate your answer

Q: You are considering going to a football game. However, the roads are cover in ice due to bad…

A: If you go to the football game, your utility function will be: ug(Z) + ui(D) = In(Z - 3) - In(2 - 1)…

Q: Two goods are produced in a two-person economy - good X and good Y. Person A's production…

A: The production possibilities frontier (PPF) represents the various combinations of two goods that…

Q: Show how the minimum explicit benefit someone is willing to accept (WTA) to partake in an activity…

A: The monetary worth of an environmental good is generally determined by the monetary value placed on…

Q: Suppose $10 is to be allocated between two people, A and B. Their preferences over A’s income, x4,…

A: The pareto efficiency is the situation when it is not possible to make someone better off without…

Q: life example

A: Pareto-optimality belongs to welfare economics and implies social desirability; whereas…

Q: Aaron and his friends Britney, Carlos, Diana, Emily, Frank, Gwen, Hugo, Isabela, and Juliana have…

A: 10 friends have 2 weekend activities to do mentioned below:ParkHot TubBenefit received by each…

Q: Question 4 The COVID-19 pandemic has created a surge of patients going to hospitals, at times…

A: During the COVID 19, with the healthcare implications and with the rising demand of the hospital…

Q: The marginal benefit Kyra gets from eating a second sandwich is Group of answer choices the total…

A: In economics, marginal benefit and total benefit are two related concepts that help us understand…

Q: Villagers each have $1,200 to invest in either cattle or a government bond. They will sell either at…

A: Marginal income is the change in total income. Marginal income =

Q: Consider a point underneath the Production Possibilities Frontier (PPF). How would you describe it?…

A: Production possibility frontier: - it is the graphical representation of different combinations of…

Q: There are two firms, whose production activity consumes some of the clean air that surrounds our…

A: Nash equilibrium is a part of game theory that describes an equilibrium among two players or firms.…

Q: Approximately a thousand people enjoy a local beach. The utility each person gets from the beach is…

A: People who enjoy beach = 1000Utility, U = xx people contribute to cleaning the beachThe total cost…

Q: Katniss likes to eat deer (d) and rabbit (r). Her preferences over these game meats are Cobb-…

A: b) With 50 units of energy, the budget constraint becomes 25d+12r<=50Plugging in d=11.7 and…

Q: For the rest of this question consider a two goods economy where Kim and Jung can trade Ferraris…

A: Given: Two individuals: Kim = K and Jung = J. Two goods: Ferrari = X and VR headsets = Y. They have…

Q: "Most of the literature on Islamic economics dealing with consumer behavior at microeconomic level…

A: The consumer behavior is the vital economic theory that deals with the consumption pattern and…

Q: You are considering going to a football game. However, the roads are cover in ice due to bad…

A: Utility Function : U(Z) + U(D) = ln (Z - 3) - ln(2-D)  Also it is given that , D = 1  So utility…

Q: 3(b)Consider the following social choice problem in the setting of consumption of two goods by two…

A: The Social Choice problem is ranking various social alternatives based on social desirability.…

Q: Econoline Company produces only two goods and they operate with limited resources. The production…

A: A graphical depiction known as the Production Possibility Frontier illustrates the highest possible…

Q: The diagram below represents a 3-consumer economy, revealing each individual's demand curve (D1, D2,…

A: Assuming all other variables stay constant, a customer's demand curve depicts the link between the…

Q: Tom and Jerry are room mates. They spend a total of 80 hours a week together in their room. Tom…

A: A utility function is a mathematical function that represents a person's preferences over different…

Q: Assume that a social planner could redistribute initial wealth (the amounts of ? and ? that Kim and…

A: Yes because as per The second welfare theorem any Pareto efficient allocation can be obtained as an…

Q: Problem 1. Andy (consumer A) and Red (consumer B) growing old together on a remote island on which…

A: The objective of the question is to understand the concept of Edgeworth box, contract curve, Pareto…

Q: Four individuals who live around a camp are hosting separate chirstmas parties, and all are…

A: The equilibrium output level is achieved where Marginal Benefits = Marginal Cost Individual marginal…

Q: Suppose you would have to pay Alicia at least $150 to get her to part with a ticket she just bought…

A: Loss aversion is a psychological phenomenon where people tend to prefer avoiding losses rather than…

Q: Researchers present participants a raffle for a trip to Hawaii in which 10 tickets in total are…

A: The travellers may wants to access with the benefits of 1st ticket and the 5th ticket which could be…

Q: Musashi plays the cello as part of a string duo and advertises booking opportunities using brochures…

A: The optimal combination is that combination of two goods that when consumed gives the maximum…

Q: Malaria Eradication Back on the Table In response to the Gates Malaria Forum in October 2007,…

A: Marginal cost refers to the additional cost incurred by the producer for producing an additional…

Q: For the rest of this question consider a two goods economy where Kim and Jung can trade Ferraris…

A: a. The initial endowment of Kim is denoted by E K and E Dimensions of the box is (40, 40). b. The…

Q: You own a DVD of the film 'A Beautiful Mind'.  The opportunity cost of watching the DVD the second…

A: Opportunity cost is the cost of second best option available to the consumers that he is leaving in…

Q: Prior to 2003, the city of Boston was often one big parking lot. Traffic jams were common, and it…

A: When there are no fees, the equilibrium is achieved at point EMKT. This implies a usual equilibrium…

Q: Analyze how pareto efficiency is achieved from consumption activities in an economy

A: Human wants are unlimited but the resources to satisfy these wants are limited. Hence there is a…

Q: The utility possibility frontier is defined as the set of maximum utility levels for all consumers…

A: The Utility Possibility Frontier (UPF) represents the maximum degree of total utility that can be…

Q: Question 33 Mr. Blutarski is a college student who writes research papers and plans parties. At…

A: Production alludes to the method involved with making goods and services to address the issues and…