There are two consumers of mosquito abatement (a public good), Dave and Lilly. Dave’s benefit from mosquito abatement is given by ??? = 100 − ?, where Q is the quantity of mosquito abatement. Lilly’s benefit is given by ??? = 60 − ?.a. Calculate the total marginal benefit, ???.b. Suppose that mosquito abatement can be provided at a marginal cost of ?? = 2?. Find the socially optimal level of abatement.c. If mosquito abatement is privately supplied, what quantity will be supplied by Dave, and what quantity will be supplied by Lilly? Briefly explain. 4. There are two consumers of mosquito abatement (a public good), Dave and Lilly.Dave's benefit from mosquito abatement is given by MBDquantity of mosquito abatement. Lilly's benefit is given by MBL = 60 – Q.a Calculate the total marginal benefit, MBT.100 – Q, where Q is theb. Suppose that mosquito abatement can be provided at a marginal cost of MC =2Q. Find the socially optimal level of abatement.ely supplied, what quantity will be suppliedC If mosquito abatement isby Dave, and what quantity will be supplied by Lilly? Briefly explain.

a) The marginal benefit of Dave, MBD = 100- Q The marginal benefit of Lily, MBL = 60- Q The total…

Answered: There are two consumers of mosquito…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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There are two consumers of mosquito abatement (a public good), Dave and Lilly. Dave’s benefit from mosquito abatement is given by ??? = 100 − ?, where Q is the quantity of mosquito abatement. Lilly’s benefit is given by ??? = 60 − ?.
a. Calculate the total marginal benefit, ???.
b. Suppose that mosquito abatement can be provided at a marginal cost of ?? = 2?. Find the socially optimal level of abatement.

c. If mosquito abatement is privately supplied, what quantity will be supplied by Dave, and what quantity will be supplied by Lilly? Briefly explain.

4. There are two consumers of mosquito abatement (a public good), Dave and Lilly.
Dave's benefit from mosquito abatement is given by MBD
quantity of mosquito abatement. Lilly's benefit is given by MBL = 60 – Q.
a Calculate the total marginal benefit, MBT.
100 – Q, where Q is the
b. Suppose that mosquito abatement can be provided at a marginal cost of MC =
2Q. Find the socially optimal level of abatement.
ely supplied, what quantity will be supplied
C If mosquito abatement is
by Dave, and what quantity will be supplied by Lilly? Briefly explain.

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