Question #4. Parker County is considering reestablishing bobcats in a number of local parks. The cats are known predators of small pets and livestock, but also an important predator for controlling certain rodent and small mammal populations. The New York State Department of Environmental Conservation (DEC) has conducted both a statewide and county level contingent valuation survey. They found that the local (county level) marginal willingness to pay represented by the equation: MWTP= -.4Q+130. The DEC found the statewide marginal willingness to pay represented by the equation: MWTP= -0.9Q+400. Further, the DEC has estimated an aggregate marginal cost of establishing and maintain the bobcats to be MC= 0.5Q+30. What would be the efficient population of bobcats if only the local willingness to pay was considered? What would be the net benefits to local people if this population was maintained? What would be the efficient population of bobcats if only the statewide willingness to pay was considered?
Question #4. Parker County is considering reestablishing bobcats in a number of local parks. The cats are known predators of small pets and livestock, but also an important predator for controlling certain rodent and small mammal populations. The New York State Department of Environmental Conservation (DEC) has conducted both a statewide and county level contingent valuation survey. They found that the local (county level) marginal willingness to pay represented by the equation: MWTP= -.4Q+130. The DEC found the statewide marginal willingness to pay represented by the equation: MWTP= -0.9Q+400. Further, the DEC has estimated an aggregate marginal cost of establishing and maintain the bobcats to be MC= 0.5Q+30. What would be the efficient population of bobcats if only the local willingness to pay was considered? What would be the net benefits to local people if this population was maintained? What would be the efficient population of bobcats if only the statewide willingness to pay was considered?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Question #4. Parker County is considering reestablishing bobcats in a number of local parks. The cats are known predators of small pets and livestock, but also an important predator for controlling certain rodent and small mammal populations. The New York State Department of Environmental Conservation (DEC) has conducted both a statewide and county level contingent valuation survey. They found that the local (county level) marginal willingness to pay represented by the equation: MWTP= -.4Q+130. The DEC found the statewide marginal willingness to pay represented by the equation: MWTP= -0.9Q+400. Further, the DEC has estimated an aggregate marginal cost of establishing and maintain the bobcats to be MC= 0.5Q+30.
- What would be the efficient population of bobcats if only the local willingness to pay was considered?
- What would be the net benefits to local people if this population was maintained?
- What would be the efficient population of bobcats if only the statewide willingness to pay was considered?
- What would be the net benefits to people across the state if this population of bobcats was maintained?
- Assume the DEC decides to establish the population at 200 bobcats. Which group would experience the greatest change in net benefits? What would be the value of the change for each group?
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