Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 13, Problem 3SCQ
The Gizmo Company is planning to develop new household gadgets. Table 13.4 shows the company’s demand for financial capital for research and development of these gadgets, based on expected
- If the going interest rate is
- Assume that the interest rate is still
How much will the firm invest if it also receives the social benefits of its investment? (Add an additional
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The accompanying table shows the relationship between the
speed of a computer's CPU and its benefits and costs. Assume
that all other features of the computer are the same (that is,
CPU speed is the only source of variation), and only the CPU
speeds listed in the table are available for purchase.
CPU
Total
Marginal
Total
Marginal
GHz
Benefit
Benefit
Cost
Costs
2.0
$1,000
$900
2.5
$1,400
$ 100
3.0
$300
$1,200
3.5
$1,900
$ 1,500
4.0
$2,000
$ 400
The marginal cost of upgrading from a 2.5GHz to 3.0GHz
computer is
O $400.
O $300.
$200.
O $100.
Question 43
Refer to the situation and table in Question 42. From an economic perspective, should the new street light be purchased?
Group of answer choices
Yes, because a majority of people in the town would get a net benefit from it.
No, because not everyone in town gets a positive net benefit from the new streetlight.
Yes, because it provides benefits to people in the town.
No, because the total benefit from the streetlight would be less than the total cost.
4. Consider a community with 80 vacant parcels. The value of developed parcels can be
represented by V=80-X, where V is measured in 1000s of $. X represents the number of
developed parcels. Each parcel costs 10,000 (C=10) to prepare for development.
The social value of undeveloped parcels can be represented by the function U=10+X, where U
is also measured in 1000s of $.
What is the efficient number of developed parcels?
How many parcels will be developed if each parcel is owned by a separate individual,
maximizing their own profits?
Chapter 13 Solutions
Principles of Economics 2e
Ch. 13 - Do market demand curves reflect positive...Ch. 13 - Suppose that Sonys R. Is this a private or social...Ch. 13 - The Gizmo Company is planning to develop new...Ch. 13 - The Junkbuyers Company travels from home to home,...Ch. 13 - When residents in a neighborhood tidy it and keep...Ch. 13 - Education provides both private benefits to those...Ch. 13 - Which of the following goods or services are...Ch. 13 - Are the following goods non-rival in consumption?...Ch. 13 - In what ways (it) company investments in research...Ch. 13 - Will the demand for borrowing and investing in R&D...
Ch. 13 - Why might private markets tend to provide too few...Ch. 13 - What can government do to encourage the...Ch. 13 - What are the two key characteristics of public...Ch. 13 - Name two public goods and explain why they are...Ch. 13 - What is the free rider problem?Ch. 13 - Explain why the federal government funds national...Ch. 13 - Call a company be guaranteed all of the Social...Ch. 13 - Is it inevitable that government must become...Ch. 13 - How do public television stations, like PBS, try...Ch. 13 - Why is a football game on ESPN a quasi-public good...Ch. 13 - Provide two examples of goods/services that are...Ch. 13 - Radio stations, tornado sirens, light houses, and...Ch. 13 - HighFlyer Airlines wants to build new airplanes...Ch. 13 - Assume that the marginal private costs of a film...Ch. 13 - Becky and Sarah are sisters 1who share a room....
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