Question 14 Marginal Social Cost (dollars per course) Quantity (Number of Students) Marginal Private Marginal Social Benefit Benefit 60 3,500 70 120 65 3,625 65 115 70 3,750 60 110 75 1,875 55 105 80 4,000 50 100 85 4,125 45 95 90 4,250 40 90 95 4,375 35 85 100 4,500 30 80 105 4,625 25 75 110 4,750 20 70 The table above gives the marginal social cost (which equals the price), marginal private benefit, and marginal social benefit of students attending Diablo Valley College (DVC) in Concord, California. The socially efficient number of students attending DVC is

Question 14 Marginal Social Cost (dollars per course) Quantity (Number of Students) Marginal Private Marginal Social Benefit Benefit 60 3,500 70 120 65 3,625 65 115 70 3,750 60 110 75 1,875 55 105 80 4,000 50 100 85 4,125 45 95 90 4,250 40 90 95 4,375 35 85 100 4,500 30 80 105 4,625 25 75 110 4,750 20 70 The table above gives the marginal social cost (which equals the price), marginal private benefit, and marginal social benefit of students attending Diablo Valley College (DVC) in Concord, California. The socially efficient number of students attending DVC is

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

Please answer questions 1. i - iii
Lecture: Externality - Pigou8. All-Leather is a tanning company located on Lake Michigan in Chicago. Its total cost functionis C(QA) = 125 + 8QA + 5QA2, where QA is leather production per week in thousands of pounds.a) If leather sells for $408 per thousand pounds, how much leather will All-Leather produce?How much profit does All-leather earn?Enjoy is a beverage company located on Lake Michigan near All-Leather in Chicago. Enjoy’sproduction of beverages is negatively affected by water pollution from All-Leather’s productionof leather. Enjoy’s total cost function to produce beverages isC(QE) = 10QE +3QE2 + 3QA2where QE is Enjoy’s weekly production of beverages, in thousandsof gallons and, as above, QA is All-Leather’s weekly production of leather.b) Is this an example of a pecuniary externality or a real externality? Explain.c) What is the extra cost to Enjoy from an additional thousand tons of leather production by AllLeather (i.e., the external marginal cost of an extra unit of QA…
7 The table shows cost data for producing different amounts of higher education. The market for higher education produces positive externalities in the form of more informed voters and higher rates of technological growth. Use the information in the table to answer the question Supply Price 3 18 33 48 63 27 30 33 36 39 × 39 Private Demand 37 30 23 16 9 Private + Social Demand 57 50 43 36 29 How much higher education would we expect to be produced in the free market?
Answering fast....
The table below shows cost data for producing different amounts of higher education. The market for higher education produces positive externalities in the form of more informed voters and higher rates of technological growth. Use the given information to answer the questions below. Price Supply Private Demand Private+Social Demand 63 76 102 15 70 70 96 28 77 64 90 41 84 58 84 54 91 52 78 How much higher education would we expect to be produced in the free market? What is the socially optimal output of higher education? F12 F10 11 F9
The table gives information about the marginal benefit and marginal cost of a trade school education. What is the value of the voucher that the government must provide to result in the efficient number of trade school students enrolled? The efficient number of trade school students will enroll if the government provides vouchers worth $ per student per year. >>> Remember that the amounts in the table are given in thousands of dollars. Marginal social Quantity Marginal (thousands private benefit benefit of students per year) 1 2 3 4 5 (thousands of dollars per student per year) 10 9 8 7 6 3219 11 Marginal cost 10 9 10 10 10 10 2999 10
A residential community has 100 residents who are concerned about security. The accompanying table gives the total cost of hiring a 24-hour security service as well as each individual resident's total benefit. Total individual benefit to each Quantity of Security Guards Total Cost resident $0 $0 1 150 10 2 300 16 3 450 18 4. 600 19 a. Explain why the security service is a public good to the residents. b. Calculate the marginal cost, the individual marginal benefit for each resident, and the marginal social benefit. c. If an individual were to decide about hiring and paying for security guards on his or her own, how many guards would that person hire? d. If the residents act together, how many security guards will they hire? e. Do you think cooperation among the residents is made easier or more difficult by them all having the same private marginal benefit? Why?
Ronald Coase in his classic October 1960 article “The Problem of Social Cost” (Journal of Law and Economics 3[1], pp.1-4) discussed collective ownership of resources. Collective ownership often means that no one takes care of resources, or at minimum that resources are not cared for as well as if they were privately owned. What are some of problems with collective ownership in the health care industry? Can you think of some examples in which collective ownership works? In what situations does it not work?
1
2.0 Star LEO 2.0 Lesson Details LEO Modules A myleo.rp.edu.sg//Quiz/TakeQuiz/StartQuiz?id%3Deb8469f1-47dd-eb11-8128-5cb901e2a85 Figure 1 Marginal Social Cost Py Marginal Private Cost 20 15 10 Marginal Private Benefit = Marginal Social Benefit 5. 100 200 300 Quantity Fill in the blanks based on Figure 1. a) Marginal external cost of Product X: $ b) Martinal external benefit of Product X: $ c) Private market price of Product X = $ d) Socially optimal output of Product X: e) Value of Py = $ P Type here to search 99