Crop loss per additionalsteerNumber in herdAnnual crop loss(Steers)(Tons)(Tons)113234104The cost of crop damage is $1/ton.The cattle rancher is able to sell the meat from each steer for $3.5.What is the socially efficient number of steers? [Select)If the rancher is liable for crop damages, will the rancher raise the efficient number ofsteers? [ Select ]If there are no transaction costs, and the rancher is not liable for crop damages, willthey raise the efficient number of steers? [Select)The point of Coase's analysis here is that if the pricing system functions withouttransaction costs, I Select)

Given information Price of selling output=$3.5 per steer Cost of crop damage is $1 ton Number of…

Answered: Number in herd Annual crop loss Crop…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Costs and Benefits for Control of Nitrogen Oxide Emissions ($mil) Total Marginal Total Cost Benefit Marginal Benefit % NOX abatement (TC) (TB) Cost (MC) (MB) Marginal Net Benefit Total Net Benefit 10 50 400 8.00 20 110 780 7.09 30 180 1130 6.28 40 320 1440 4.50 50 590 1710 2.90 60 930 1820 1.96 70 1420 1890 1.33 80 2020 1910 0.95 90 2860 1915 0.67 100 3870 1917 0.50
(Figure: The Socially Optimal Quantity of Emissions from Coal Production) Use Figure The Socialy Optimal Quarety of Emissions from Coal Production in the figure, firms are the only beneficiaries of polution, and costs are borne solely by others in the society. Without government intervention Marginal social cost, marginal social benefit MSC of pollution MSB of pollution Quantity of pollution emissions (tons) O The outcome cannot be determined without more information Orms will continue to polute until the marginal benefit to them is $200 O firms will continue to pollute until the marginal benate to them is zero. O the quantity of pollution will be optimal.
$ per meal 22 20 18 16 14 12 10 8 6 4 2 10 10 12 8 14 C Submit 30 B D EE A A local restaurant attracts a large crowd for lunch. However, its customers park their cars on the street, making it more difficult customers of other businesses to pass and find parking. In an unregulated market, the restaurant will charge__ $ per meal. 50 70 MSC MPC MPB=MSB 110 130 90 Meals per hour You have used 0 of 1 attempt 9 Save
Suppose the marginal cost (MC) and marginal benefit (MB) of reducing nitrogen oxide air pollution are illustrated in the figure. Suppose initially 3 million tons of nitrogen oxides are being reduced. What is the net benefit to society of increasing the elimination of nitrogen oxide air pollution to 6 million tons? The net benefit is $ million. (Enter your response rounded to one decimal place.) Cost or benefit ($ per ton) 500- 450 400- 350- 300- 250- 200- 150- 100- 50- 0- 0 1 MC 2 3 4 5 6 7 8 Reduction (millions of tons per year) MB 9 10
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When externalities cause markets to be inefficient (x) government action is sometimes needed to solve the problem. (y) private solutions can be developed to solve the problem. (z) there is a way to eliminate the problem of externalities in the market if producers are provided with the appropriate incentives to internalize the externality. Select one or more: a. (x), (y) and (z) b. (x) and (y) only c. (x) and (z) only d. (y) and (z) only e. (z) only
25. Suppose that there is a large farm and a large recreation firm located on a river. The farm is upstream of the recreational area. The farm uses the streamflow for irrigation. Let S be the amount of streamflow used by the farm and suppose its marginal benefit for irrigation is given by MB-5000-15S. Use of streamflow by the farm is costly to the recreational firm, though, because of lost opportunities for boating, fishing, and camping. Suppose this marginal cost is given by MC=5s. (a) Draw a sketch of the MB and MC curves for use of S by the farm. On your graph, show the efficient level of S by the farm. Solve for this amount from the equations. (b) If unregulated, the farm uses streamflow at a price of zero. Show on your graph what S this corresponds to. Solve for it from the equations. (c) If the government sets a tax price on streamflow, what tax price per unit of S will result in the farm using the efficient level of streamflow? Show on your graph and find with the equations. (d)…
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Consider the following graph that shows the marginal abatement cost (MAC) curve for a coal power plan for reducing local air pollution and the marginal damage (MD) curve for those living around the coal power plant. MD (E) MAC (E b. Emissions E-0 E EL E-Max AMax Or Abatement E A-0 What are the total abatement costs at E' (enter your answer with the letters and "+" signs as "a+b+c+d+e+f", without the quotation marks. What are the total abatement costs at E-0 (enter your answer with the letters and "+" signs as as "a+b+c+d+c+f", without the quotation marks. If the property rights were with the coal power plant how much Emissions would we see? (enter one of the following, "E-0", "E", "E1", "E-Max") If the property rights were with the people how much Emissions would we see? (enter one of the following. "E-0", "E", "E1 "E-Max") What is the socially optimal level of emissions (choose from one of the following and enter as written without the quotation marks, "E-0". "E"E1 "E-Max").
I Price and cost (thousands of dollars per student) 20 16 12 8 0 200 A) 0 students; 400 students B) 600 students; 600 students C) 400 students; 600 students D) 600 students; 400 students E) 400 students; 400 students S = MC MSB MB 400 600 800 1,000 Quantity (students per year) 35) 35) The figure above shows the market for private elementary school education in Chicago. There is no external cost of private elementary education. If the government does not intervene in this market, the equilibrium number of students being privately educated is and the efficient quantity is
MCS $150- MC° $125- $100- $75- $50- $25- Q 50 100 150 200 250300 Suppose that the market for steel is shown in the above figure. What specific tax would result in a competitive market producing the socially optimal quantity of steel? Answer:

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