The table below displays the private marginal benefit and the private marginal cost for Sam's Flower Farm. Quantity (acres) 100 200 300 400 500 MC Private MB Private $500 $700 600 700 700 700 800 700 900 700 Sam's Flower Farm produces wild flowers. Each acre produces $700 worth of flowers per month. Sam's farm also serves as a local attraction for tourists looking to view birds and butterflies increasing the revenues of local businesses by $100 per month. What is the "free-market" equilibrium number of acres Sam will plant? type your answer... What is the socially efficient number of acres for Sam to plant if all costs and benefits are considered? 400 units units

The table below displays the private marginal benefit and the private marginal cost for Sam's Flower Farm. Quantity (acres) 100 200 300 400 500 MC Private MB Private $500 $700 600 700 700 700 800 700 900 700 Sam's Flower Farm produces wild flowers. Each acre produces $700 worth of flowers per month. Sam's farm also serves as a local attraction for tourists looking to view birds and butterflies increasing the revenues of local businesses by $100 per month. What is the "free-market" equilibrium number of acres Sam will plant? type your answer... What is the socially efficient number of acres for Sam to plant if all costs and benefits are considered? 400 units units

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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