Skiers per day The diagram above shows the daily market for water skiing permits on El Dorado Lake. Suppose each skier (each permit) causes $2 of damage to the lake. What is the socially optimum number of skiers on the lake each day?

Skiers per day The diagram above shows the daily market for water skiing permits on El Dorado Lake. Suppose each skier (each permit) causes $2 of damage to the lake. What is the socially optimum number of skiers on the lake each day?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Price of ski permits
$ 10.00
$ 9.00
$ 8.00
$ 7.00
$ 6.00
$ 5.00
$ 4.00
$ 3.00
$ 2.00
$ 1.00
$ 0.00
5 10 15
20 25 30 35 40 45 50
Skiers per day
The diagram above shows the daily market for water skiing permits on El Dorado Lake. Suppose each skier (each permit) causes $2 of damage to the lake. What is the socially optimum number of skiers
on the lake each day?

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