Suppose 10 citizens each derive marginal benefit from traffic lights according to the function MB = 10 - Q. If traffic lights cost $10 each to produce, what is the efficient quantity of traffic lights? A. 1 traffic light OB. 8 traffic lights C. 12 traffic lights O D. 9 traffic lights

Suppose 10 citizens each derive marginal benefit from traffic lights according to the function MB = 10 - Q. If traffic lights cost $10 each to produce, what is the efficient quantity of traffic lights? A. 1 traffic light OB. 8 traffic lights C. 12 traffic lights O D. 9 traffic lights

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 4SCQ: What are the similarities between a consumers budget constraint and societys production...

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When households plant trees in their front yards they reduce pollution and air conditioning costs for both themselves and their neighbors. Will households plant the efficient number of trees? Explain why or not and draw a graph to show your point. The graph should be clearly labeled.
Side 35 Suppose that 10,000 people are willing to spend a maximum of $20 each to preserve one acre of rainforest. A conservation group mails out a request to each person asking him or her to mail in $40 to preserve one acre of rainforest. How many acres of rainforest will be preserved with this program? Vælg én svarmulighed O 20,000 acres O Zero acres O 10,000 acres O 5,000 acres
Sue Tom Good A 10 4 Select one: Good B 15 5 As shown in the table above, Sue and Tom each can produce two different types of goods. For Sue, if she only produces Good A, then she can produce 10 units of Good A per day. If she only produces Good B, then she can produce 15 units of Good B per day. For Tom, if he only produces Good A, then she can produce 4 units of Good A per day. If she only produces Good B, then she can produce 5 units of Good B per day. Which of the following statement is correct about comparative advantage? O a. Tom has a comparative advantage over Sue in the production of Good A. Sue has a comparative advantage over Tom in the production of Good B O b. Tom has a comparative advantage over Sue in both tasks O c. Sue has a comparative advantage over Tom in both tasks O d. Sue has a comparative advantage over Tom in the production of Good A. Tom has a comparative advantage over Sue in the production of Good B
If 10 million toy cars are sold. which means that: The production of toy cars is currently at an inefficient level, and to reach efficiency more should be produced. From the data given it is impossible to tell if toy cars are being produced at the efficient level. O The production of toy cars is currently at an inefficient level, and to reach efficiency less should be produced. The production of toy cars is currently at the efficient level. IF 30 million toy cars are sold, - vwhich means that: The production of toy cars is currently at an inefficient level, and to reach efficiency more should be produced. O From the data given it is impossible to tell if toy cars are being produced at the efficient level. The production of toy cars is currently at the efficient level. The production of toy cars is currently at an inefficient level, and to reach efficiency less should be produced. The optimal allocation of resources would result in the production of toy cars.
4. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is and The benefit of the beautification initiative, as suggested by the survey, is undertake the beautification initiative. Suppose the college administrators estimate that the beautification initiative will cost $52,110. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 2,150 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $26. Thus, the visual appearance would be classified as a public good. An equal number of first, second, third, and fourth year students were surveyed. Students believe they will eventually be charged their…
2. Suppose MAC = 40 - 2E and MD = 2E. Draw a graph to show and calculate the following: a) What are the efficient level of emissions e*, total damages TD, total abatement cost TAC, and total social costs related to emissions? b) If there is no pollution control, what is the total social costs related to emissions. How much of costs can be saved by moving to e*? c) What are the total social costs related to zero emissions? How much of costs can be saved by moving to e*? d) If the actual emission level is 15, what are the total damages, total abatement cost, and total social costs related to emissions? Compared with the efficient level, what is the deadweight loss (in terms of too high total social cost)?
4. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing.s and Thus, the visual appearance would For the students of the college, the visual appearance of the campus is be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $2,040. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 420 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $12. The benefit of the beautification initiative, as suggested by the survey, is $ Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of the benefit of the beautification…
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1. Suppose that the Total Benefit schedule to conduct Activities X and Y is given in the table below. Suppose the price of X = 2.00 and Y = 2.00 and budget allocation for these activities is 20 and this amount will all be spent for X and Y a. What is the combination of activities X and Y that represents the optimum level? b. What is Total Benefit at optimal level of these activities? QTY Total Benefit of X Total Benefit of Y 16 15 30 28 3 41 40 4 51 48 5 60 54 6. 68 59 7 75 63 8 81 66 86 68 10 89 69 11 90 69
3. Indicate whether the following are private goods, club goods, common-resource goods, or public goods: a. A bacon double cheeseburger b. An NHL hockey game between the Detroit Red Wings and Boston Bruins c. A Fourth of July fireworks show d. A swimming pool e. a vaccination for the flu f. streetlights ← + 00 8
E D A B Refer to the diagram. Assume that the horizontal axis measures the quantity of a good and the vertical axis measures the marginal-benefit and marginal- cost of the good. Assuming that the good represented here has at least some positive benefits and costs, what can we conclude about the marginal- benefit and marginal-cost curves? Multiple Choice О There is no combination of curves shown that could represent the optimal allocation of resources to this good.
12. Which of the following are actual Pareto-efficient changes? Explain briefly. a. You buy three oranges for $1 from a street vendor. b. You are near death from thirst in the desert and must pay a passing vagabond $10,000 for a glass of water. c. A mugger steals your wallet. d. You take a taxi ride in downtown Manhattan during rush hour.