Suppose there are two residents in a neighborhood, Tana and Jason. Tana's demand for clean streets is Q = 100 – 4P. Jason's demand for clean streets is Q = 80 – 2P. If your answer is not a whole number, please make sure to round to the nearest hundredth. Refer to Scenario 4. What is the socially optimal number of clean streets if the marginal cost of cleaning them is $35? and what is the socially optimal number of clean streets if the marginal cost of cleaning them is $5?

Q: Suppose demand for a public park (assume it is a pure public good) for two groups of consumers (A…

A: A pure public good is a good that is non-excludable and non-rival in nature. To obtain the socially…

Q: What is the value of the tax?  B.    Calculate Pigouvian tax revenue

A:

Q: Bart and Lisa are kids.  Their parents want to get a pet to keep them busy during a pandemic but…

A: Part a) The efficient pet is one which maximises the total valuation ( of both Bart and Lissa )…

Q: 2. Suppose we are considering fire hydrants in a small neighborhood. For simplicity, assume that…

A: Public goods refers to goods that are both non-rival and non-excludable.Non-rival is a property of…

Q: A small town has 300 people, all of whom are interested only in private consumption and in the…

A: Utility function : U(X, G) = X + AG - BG2 There are three types of people with different values of…

Q: 5 ranchers use a grassland to feed their cows. The ranchers must choose how many cows to raise. The…

A: The Nash equilibrium refers to the situation where firms independently choose their production…

Q: utility functions

A: Objective: Maximize the sum of individual utilities Constraint: Total amount of the good (fixed)…

Q: 3. Suppose we are considering fire hydrants in a small neighborhood. For simplicity, assume that…

A: Public goods refers to goods that are both non-rival and non-excludable.Non-rival is a property of…

Q: You are a guitarist that plays for a heavy metal band. Once a week, the band meets at your house for…

A: The answer is - Option 3 - You tell your neighbor that she is too quiet.

Q: Q1. Let X be a public good and Y be a private good. Two individuals, A and B, derive utility from…

A:

Q: Aaron and his friends Britney, Carlos, Diana, Emily, Frank, Gwen, Hugo, Isabela, and Juliana have…

A: 10 friends have 2 weekend activities to do mentioned below:ParkHot TubBenefit received by each…

Q: Environmentalists and economists often find themselves at odds with each other. The conflict between…

A: Conflicts happen always between the economists and environmentalists. Their argument is correct in…

Q: Suppose that it costs 500 per day to search for chanterelle mushrooms at Pt.Reyes National…

A: The total weight of mushrooms is as follows: M=100x-x2, M represents total weight and x represents…

Q: *: * Suppose 15 people each have the demand Q = 220 – 40P for streetlights, and 10 people ve the…

A: There are 15 people each have the following demand:   Q = 220 - 40P   => P = (220 -Q) / 40…

Q: The famous singer Jason Lumberpond likes to drive his solid-gold rocket car back and forth in front…

A: Firstly as per the relationship given, L>E>C it is clear that loss in any of install either…

Q: Now suppose that the government has to intervene in the production of the good (rice) for there is a…

A: The economies around the globe are involved in the economic, and the financial activities. The…

Q: Find the social demand curve for clean streets in this neighborhood. What is the y-intercept of the…

A:

Q: 2. How would you explain to a skeptical bank manager why the socially optimal number of bank…

A: Explaining to a skeptical bank manager why the socially optimal number of bank robberies is not zero…

Q: The demand for clean streets in a neighborhood is Q = 125 – P. For each of the following questions,…

A: The demand for the cleans streets in a neighbourhood: Q = 125-P or P = 125 – Q Where P is the price…

Q: Villagers each have $1,200 to invest in either cattle or a government bond. They will sell either at…

A: Marginal income is the change in total income. Marginal income =

Q: d, both Ana and Dina will benefit from any contributions made by the other person. Sp ll bring each…

A: Contribution margin, or dollar commitment per unit, is the selling cost per unit less the variable…

Q: From the book  "Power and Plenty: Trade, War, and the World Economy in the Second Millennium" by…

A: Physical capital refers to tangible assets that are used in the production process, such as…

Q: Suppose 10 people each have the demand Q=20-4P for streetlights and 5 people have the demand Q=…

A: In economics, the marginal cost is the change in the total cost that arises when the quantity…

Q: There are two firms, whose production activity consumes some of the clean air that surrounds our…

A: Nash equilibrium is a part of game theory that describes an equilibrium among two players or firms.…

Q: There are 9 people with the following marginal willingness to pay schedules for levels of…

A: Given, Two people with the same marginal WTP=$20-Q. Three people with the same marginal WTP= $10-Q.…

Q: What challenges do economies face in light of optimal allocation and public goods

A: For the most part, the public money idea manages the ideal distribution of assets involving it for…

Q: units of pharmaceuticals, but the socially optimal quantity of pH To create an incentive for the…

A: Social cost refers to the cost suffered by society as a result of any specific economic activity or…

Q: Consider an economy with n consumers, one private good and one public good. We think of the private…

A: Public economics' primary area of study is how the government affects the economy. Economists that…

Q: The city is contemplating making street improvements on a street with only two residents. The…

A: The evaluation of a project's efficiency involves weighing the added benefits against the extra…

Q: Susan and Jane are believed to have the same money income, have the same tastes, and face the same…

A: Consumer surplus is the difference between the maximum willingness to pay and actual payment. Given…

Q: Peter, John, and James are discussing how to share three chocolate bars and three bags of chips. For…

A: Pareto efficiency:Pareto efficiency is a situation when in any given economy the allocation is such…

Q: There is an excludeable public good. It will be provided by a club, which must fund the good through…

A: Club goods are non-rivalrous, no one or more people may use them up or contaminate them until the…

Q: Bart and Lisa are kids.  Their parents want to get a pet to keep them busy during a pandemic but…

A: Answer a) If parents go for adopting Dog as a pet then thier utilityBart + Lisa = (40 + 15)…

Q: Sylvester and Rachel live together on an island with two goods, food and shelter. Food is a private…

A: The quantity of shelter that Sylvester will buy is determined by the point where his marginal rate…

Q: Four individuals who live around a camp are hosting separate chirstmas parties, and all are…

A: The equilibrium output level is achieved where Marginal Benefits = Marginal Cost Individual marginal…

Q: A local school administrator observes an increase in the number of flu cases in the public schools…

A: Externality refers to the external cost and benefits that are imposed on third parties without their…

Q: Consider an economy with n consumers, one private good and one public good. We think of the private…

A: Public economics' primary area of study is how the government affects the economy. Economists that…

Q: Given a MC function and a MB funtion for a good (e.g., MC = 10 + Q, MB = 5 - Q ,how do we derive an…

A: When demand is equal to supply, market is efficient. Demand curve shows the marginal benefit and…

Q: There are 500,000 people in Merageville. Each one of them enjoys hikes through the forest at the…

A: Pareto efficiency, also known as Pareto optimality is an economic state where resources cannot be…

Q: A village has a water reservoir that individuals A and B have access rights to. Both users A and B…

A: Net benefit equals total benefit less total cost. The marginal benefit rule tells us that we can…

Q: 1, $15 for 2, $10 for 3, and $3 for 4. a. What is the socially optimal number of streetlights to be…

A: Marginal Benefit (MB) is the additional satisfaction or utility that a consumer receives when they…

Q: A local government is considering building new public hiking trails in town. Suppose that the trails…

A: Public goods are products or services that are non-excludable and non-rivalrous, which means that…