Part 3: (Continued from above) Because the Once-lers are motivated by individual profit and won’t simply do what the Lorax says, he instead imposes a fine for every tree that the Once-lers chop down. How big must this fine be to result in the socially optimal number of truffula trees being chopped down? Group of answer choices a. 70 b. 55 c. 5 d. 65 e. 60
Note : Please (Only do part 3)
Part 1: Some Once-lers live in a wonderful land filled with beautiful truffula trees. They each independently chop down the truffula trees to make and sell thneeds. The total value of thneeds sold is f(x) = 150x − 5x2, where x is the number of truffula trees chopped down. If it costs 20 dollars to chop down a truffula tree, how many trees will the members of the Once-ler family collectively chop down?
a. 13
b. 28
c. 24
d. 15
e. 14
Part 2: (continued from previous question) The Lorax appears from a truffula stump and demands that the Once-lers act more responsibly. He demands that they chop down the socially optimal number of truffula trees. How many trees would be chopped down in the social optimum?
a. 13
b. 16
c. 15
d. 14
e. 12
Part 3: (Continued from above) Because the Once-lers are motivated by individual profit and won’t simply do what the Lorax says, he instead imposes a fine for every tree that the Once-lers chop down. How big must this fine be to result in the socially optimal number of truffula trees being chopped down?
Group of answer choices
a. 70
b. 55
c. 5
d. 65
e. 60
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