Geoffrey is a new employee at the Boston Consulting Group where his first assignment is to work on a project that is designed to help improve the education system in Boston. As his first task on the project, Geoffrey begins by analyzing the market for education in Boston and he finds that the Social Marginal Cost (SMC) function in the educational market in Boston is equal to: SMC = 20 +2Q. Next, Geoffrey uses data obtained from Boston population that attended the educational system to find the Private Marginal Benefit (PMB) function in this market; the equation for PMB 200-2Q where Q represents the units of education that city of Boston produces. Upon additional analysis of the data, Geoffrey learns that each unit of education provides an external benefit to society equal to $20 per unit. Geoffrey also knows that the current market for education in Boston does not internalize the external benefit. Given all that Geoffrey has learned about the market for education in Boston, he calculates the deadweight loss in this market using the skills he learned in Econ 101. What is the deadweight loss in this market that Geoffrey finds? (please enter just the number and not the $ symbol)

Geoffrey is a new employee at the Boston Consulting Group where his first assignment is to work on a project that is designed to help improve the education system in Boston. As his first task on the project, Geoffrey begins by analyzing the market for education in Boston and he finds that the Social Marginal Cost (SMC) function in the educational market in Boston is equal to: SMC = 20 +2Q. Next, Geoffrey uses data obtained from Boston population that attended the educational system to find the Private Marginal Benefit (PMB) function in this market; the equation for PMB 200-2Q where Q represents the units of education that city of Boston produces. Upon additional analysis of the data, Geoffrey learns that each unit of education provides an external benefit to society equal to $20 per unit. Geoffrey also knows that the current market for education in Boston does not internalize the external benefit. Given all that Geoffrey has learned about the market for education in Boston, he calculates the deadweight loss in this market using the skills he learned in Econ 101. What is the deadweight loss in this market that Geoffrey finds? (please enter just the number and not the $ symbol)

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

Researchers in Westland and Eastland are developing better treatments for lycanthropy, which afflicts no other region in the world. Inhabitants of both countries benefit from better treatments regardless of which country conducts the research. The country specific marginal benefit from the research differs, however, due to differing prevalence of the disease as well as different trade-offs with respect to other potential uses of resources. In Westland the marginal benefit at Q researcher-years is P d W (Q) = 96 − 12Q and in Eastland P d E(Q) = 60 − 10Q, where the benefit is measured in Large Monetary Units (LMU). The cost of a researcher-year is a constant 20 LMUs in both countries. (a) What is the efficient amount of research? (b) Suppose one of the countries jumps ahead and commits to provide exactly half of the efficient amount in part 3a. Taking this as given, how much will the other country then provide? Consider both cases of either Westland or Eastland being the first mover. (c)…
The neoclassical tradition in economics has put a huge emphasis on the benefits of competition. Only the perfectly competitive market structure reliably produces both productive and allocative efficiency (measures of static efficiency). Any of the imperfectly competitive market structures are generally viewed as a fall from grace. All are described as statically inefficient, it is just a matter of degree. Typically, we bemoan the movement toward a monopoly, and often invoke antitrust law to prevent it. If you were given a choice would you be willing to live in a world of perfect competition? Put another way, are there reasons to prefer imperfect competition (Monopolistic Comp., Oligopoly, and Monopoly)? Can you think of anything that you currently consume/use that is a product of a large oligopolist...Do you think it would even be possible for a perfectly competitive industry to have created it? If you are struggling with this topic, then search the web for "dynamic…
Please provide answer in 1hr thanks
cenario 2: Individual Preference and Allocating Public Goods The residents of a gated community in Beverly Hills are trying to come to a decision on the number of security officers they should hire to guard their small neighborhood every night. Due to the size of their neighborhood, all families would benefit from having security officers even if they preferred to not pay for them. The security firm the families reached out to quoted prices for each number of security officers, with a discounted applied for additional officers. Hiring 1 officer would cost $1,000 per night, 2 officers would cost $1,700 per night, and 3 officers would cost $2,100 per night. The residents of the community have agreed to split the cost of hiring the officer evenly among all the families. Each family’s willingness-to-pay for each number officers is provided below: Family 1 officer 2 Officers 3 Officers Stark $0 $200 $300 Wayne $500 $1,000 $1,500 Parker $400 $575…
A group of entrepreneurs has launched a privately funded spaceship and has created the beginnings of the space tourism industry. The Ansari X Prize Foundation announced that it would award $10 million to the first private company that would fly a manned rocket into space and return safely. Many entrepreneurs competed for the prize but one called Space Ship One succeeded first. It was designed by Burt Rutan, owner of a company that sells build-it-yourself airplanes and was funded by Paul Allen, co-founder of Microsoft. The long-term goal of the X Prize is to create an affordable space tourism industry where trips to other planets become common for all people. QUESTIONS 1. If the space tourism becomes a successful industry by the year 2050, what would be the possible trends to foresee in the industry?
The city council hired three college interns to measure public support for a large parks and recreation initiative in their city. The interns mailed surveys to 500 randomly selected participants in the current public recreation program. They received 150 responses. In this case, which of the following is the population of interest? A.O The participants who support the initiative B.O All members of the community C.O All participants in the city's recreation program D.O The 150 people who responded E. The 500 people who got the survey
Consider the claim that the market interaction of individually rational agents leads to an outcome that is socially rational. Address the following questions: In what sense is the above claim true? Explain what means that agents are individually rational and that the market outcome is socially rational as part of your answer. Identify at least two essential conditions that a market must satisfy for the claim to be true. (i.e.: the conditions must be necessary and sufficient for the claim to be true). Explain why the claim should be true when these two conditions are satisfied. Explain why the claim would no longer be true for markets that do not satisfy these two conditions, separately focusing on each one of the cases in which the claim is not true. For those cases in which the claim is not true, describe government interventions that may help the market outcome to become socially rational in some sense.
During the COVID-19 Lockdown in May, many rickshaw-pullers left the market of rickshaw-rides and went to their village homes to pursue other work. What can you conclude from the given information?Discuss all conclusions in detail.
Takaful and Karama is a social program that has been launched by the Egyptian government in 2015 to support the disadvantaged and most vulnerable families and elderly citizens. The part of the program that is directed to support families represents a conditional cash transfer that requires families to keep their children in school until they are 18 years old and follow up visits to local health care units to be eligible for receiving the cash transfer. Amira is an Egyptian ten years old child from a poor family who has previously dropped out of school. To be eligible for the fund, her mother enrolled her in school again. Amira is expected to remain in school until she is 18 years old. a) Explain, with the support of illustrative charts, the impact of Amira's returning to school until she is 18 on her potential life earning stream. b) How will that social program impact the national human capital of Egypt in the future, and specifically the characteristics of the Egyptian national…
Suppose there are two different neighborhoods in a city. One neighborhood has 400 Black residents and 600 white residents. The other neighborhood has 800 Black residents and 400 white residents. What is the Dissimilarity Index (DI) equal to?
Who detected the endowment effect first? Tell us about the design of the experiment and its main conclusions.
Suppose society consists of two individuals, A and B, who must split a fixed income of $150. Individual A's marginal utility of income is given by MUA=400-IA and individual B's marginal utility of income is given by MUB=600-6IB. Suppose the social welfare function is W=UA+UB. What if the social welfare function is, instead, W=min(UA,UB). 44. Then equity in the distribution of income would be synonymous with equality of What if the social welfare function is, instead, W=UA+2.6UB and individual B's marginal utility is, instead, MUB=200-IB. 45. What is the optimal distribution of income to individual A? $ 46. What is the optimal distribution of income to individual B? $ 47. Equity in the distribution of income would be synonymous with equality of