Excludable goods and rival in consumption.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 11, Problem 1QR

To determine

Excludable goods and rival in consumption.

Expert Solution & Answer

Explanation of Solution

Excludable commodities are the commodities that can be excluded from people to consume them or acquire benefit of the commodity. The consumer has to pay a price in order to avail the commodities.

A commodity is rival in consumption, if the consumption of a commodity by one person diminishes the availability of that commodity to another person. Consumption of private goods and common goods by one person reduces the availability of that good to other individuals.

A pizza producer can prevent someone who does not pay for the pizza from eating it. Therefore, pizza is excludable.

When one person eats it, no one else can eat it. So pizza is also rival in consumption.

Economics Concept Introduction

Concept Introduction:

Consumption: Consumption refers to the purchase of goods and services in order to satisfy human wants.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Section 1 Answer all questions. Show all your workings. (a) Suppose there are two firms 1 and 2, whose abatement costs are given by c₁(e₁) and c₂ (e₂), where e denotes emissions and subscripts denote the firm. We assume that c{(e;) 0 for i = 1,2 and for any level of emission e we have c₁'(e) # c₂'(e). Furthermore, assume the two firms make different contributions towards pollution concentration in a nearby river captured by the transfer coefficients ε₁ and 2 such that for any level of emission e we have 2(e) +2 The regulator does not know the resulting C₁'(e) Τι environmental damages. Using an analytical approach explain carefully how the regulator may limit the concentration of pollution using (i) a Pigouvian tax scheme and (ii) uniform emissions standards. Discuss the cost-effectiveness of both approaches to control pollution. [200 marks] (b) "Whether the regulator sells or gives away tradeable emission permits free of charge, the quantities of emissions produced by firms are the…

Exotic Coffee for the Poor? What a Genius Idea! you are a business consultant at a coffee shop. Your team leader came to you one morning with excitement on her face and told you, "Guess what? I have an idea for a great location for our next coffee shop. Think about it, Riceville is a city that has 150,000 people. Most of them are above the age of 16, which means they are potential coffee drinkers. Well, even though the majority of people in that city are making minimum wage and are considered poor, but the good news is that there are no coffee shops in Riceville and the only places you could get coffee there either restaurants or gas stations. What do you think?" Knowing that your company’s average drink price is $5.50, and the stores have nice sit-down areas and offer free WIFI and study spaces: What type of information about consumers in that area do you need to gather and understand to determine if people there will actually consume your coffee? How do the concepts of “budget and…

(c) Assume an infinite horizon, continuous time and certainty. Furthermore, assume an additively separable utility function in consumption C and pollution stock S so that, U(C,S) = u(C) + v(S), where uc > 0; Ucc 0. Note that the first derivative, and the second subscript denotes the second derivative. The evolution of the pollution stock S over time is a function of consumption, decay rate of the stock of pollution & and abatement through the function, g(S) with gs > 0 and 9ss < 0. Time subscripts are ignored for ease of notation. Show that in the case of a stock pollutant, the marginal utility of consumption should equal the present value of disutility associated with the pollution stock. Interpret the condition.

Answer 2

Question

Chapter 11, Problem 1QR

To determine

Excludable goods and rival in consumption.

Expert Solution & Answer

Explanation of Solution

Excludable commodities are the commodities that can be excluded from people to consume them or acquire benefit of the commodity. The consumer has to pay a price in order to avail the commodities.

A commodity is rival in consumption, if the consumption of a commodity by one person diminishes the availability of that commodity to another person. Consumption of private goods and common goods by one person reduces the availability of that good to other individuals.

A pizza producer can prevent someone who does not pay for the pizza from eating it. Therefore, pizza is excludable.

When one person eats it, no one else can eat it. So pizza is also rival in consumption.

Economics Concept Introduction

Concept Introduction:

Consumption: Consumption refers to the purchase of goods and services in order to satisfy human wants.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 1QR

To determine

Excludable goods and rival in consumption.

Expert Solution & Answer

Explanation of Solution

Excludable commodities are the commodities that can be excluded from people to consume them or acquire benefit of the commodity. The consumer has to pay a price in order to avail the commodities.

A commodity is rival in consumption, if the consumption of a commodity by one person diminishes the availability of that commodity to another person. Consumption of private goods and common goods by one person reduces the availability of that good to other individuals.

A pizza producer can prevent someone who does not pay for the pizza from eating it. Therefore, pizza is excludable.

When one person eats it, no one else can eat it. So pizza is also rival in consumption.

Economics Concept Introduction

Concept Introduction:

Consumption: Consumption refers to the purchase of goods and services in order to satisfy human wants.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 1QR

To determine

Excludable goods and rival in consumption.

Expert Solution & Answer

Explanation of Solution

Excludable commodities are the commodities that can be excluded from people to consume them or acquire benefit of the commodity. The consumer has to pay a price in order to avail the commodities.

A commodity is rival in consumption, if the consumption of a commodity by one person diminishes the availability of that commodity to another person. Consumption of private goods and common goods by one person reduces the availability of that good to other individuals.

A pizza producer can prevent someone who does not pay for the pizza from eating it. Therefore, pizza is excludable.

When one person eats it, no one else can eat it. So pizza is also rival in consumption.

Economics Concept Introduction

Concept Introduction:

Consumption: Consumption refers to the purchase of goods and services in order to satisfy human wants.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1QR

To determine

Excludable goods and rival in consumption.

Expert Solution & Answer

Explanation of Solution

Excludable commodities are the commodities that can be excluded from people to consume them or acquire benefit of the commodity. The consumer has to pay a price in order to avail the commodities.

A commodity is rival in consumption, if the consumption of a commodity by one person diminishes the availability of that commodity to another person. Consumption of private goods and common goods by one person reduces the availability of that good to other individuals.

A pizza producer can prevent someone who does not pay for the pizza from eating it. Therefore, pizza is excludable.

When one person eats it, no one else can eat it. So pizza is also rival in consumption.

Economics Concept Introduction

Concept Introduction:

Consumption: Consumption refers to the purchase of goods and services in order to satisfy human wants.

Answer 6

Chapter 11, Problem 1QR

To determine

Excludable goods and rival in consumption.

Expert Solution & Answer

Explanation of Solution

Excludable commodities are the commodities that can be excluded from people to consume them or acquire benefit of the commodity. The consumer has to pay a price in order to avail the commodities.

A commodity is rival in consumption, if the consumption of a commodity by one person diminishes the availability of that commodity to another person. Consumption of private goods and common goods by one person reduces the availability of that good to other individuals.

A pizza producer can prevent someone who does not pay for the pizza from eating it. Therefore, pizza is excludable.

When one person eats it, no one else can eat it. So pizza is also rival in consumption.

Economics Concept Introduction

Concept Introduction:

Consumption: Consumption refers to the purchase of goods and services in order to satisfy human wants.

Answer 7

Chapter 11, Problem 1QR

To determine

Excludable goods and rival in consumption.

Answer 8

Expert Solution & Answer

Explanation of Solution

Excludable commodities are the commodities that can be excluded from people to consume them or acquire benefit of the commodity. The consumer has to pay a price in order to avail the commodities.

A commodity is rival in consumption, if the consumption of a commodity by one person diminishes the availability of that commodity to another person. Consumption of private goods and common goods by one person reduces the availability of that good to other individuals.

A pizza producer can prevent someone who does not pay for the pizza from eating it. Therefore, pizza is excludable.

When one person eats it, no one else can eat it. So pizza is also rival in consumption.