2. The figure below shows the demand curve for a U.S. farmer for irrigating his land. It costs097the farmer $100 per acre to irrigate the land. Each acre of land irrigation generates saltyrunoff that winds up in the Colorado River. It costs $50 to desalinate this river water soMexican farmers can irrigate their crops.a.Price2 Linolla no bobang od liw nowomon quoYshoHyldguorodi Arow He wor?C.250yab labiquis noboinions amoT 000, bus ,0012 101 og awotllam2 ni amoor fotoH 1moos beinet von 02 10 xat s lod ogradio or aobioob toyim odiounovor seisT OT S1001 101 011 gniog odt.bozogmi zi xet ont rofl Asiir onsloole.000 of alls bonor amo01 toto 220l trigiswbsob oda bus nwollem?(lasvuo bramabJazonbra vigque diw do wendaiti)Irrigation(acres)D=PB=SB100Draw the (marginal) private cost of irrigation on the graph. (Hint: when one more acre isirrigated, how much should be spent?)b. Draw the (marginal) social cost of irrigation on the graph.asiduob won 10vers: dTo 15dman od bnu .0112 of 2sain song si 032 01 281 sogul air ditw ceol nigiowbssb bra sunevet xet steluola) .008 or allet boinor am1001nislaxa olduob nedi casi 10 siduob and store olduob ved 1A.263How many acres will the U.S. farmer irrigate?

Externalities: When a firm produces a good sometimes it creates cost or benefits for other firms. If…

2. The figure below shows the demand curve for a U.S. farmer for irrigating his land. It costs the farmer $100 per acre to irrigate the land. Each acre of land irrigation generates salty runoff that winds up in the Colorado River. It costs $50 to desalinate this river water so Mexican farmers can irrigate their crops. a. Price C. 250 Lizella no bsbryg od liw showsmod susY yab labiqyi a no botrons amo01 000, bus 0012 101 og avotlisme ni amoor loto1-1 moon boiner og 0 to salod ograria ou dobioob Toya orlouneven saisT OT odman erit brin 80121 25211 201001or 101 on gaiog at bozognizi xot ont noft Tul 292167 X61 21 entro la Jauon eri osinols0.000 of all boren amoorto bus vigque diw dose & wandu) to 220l migiswbsob od ban mwoiller? (lesvnus basmab Irrigation(acres) D=PB=SB 100 Draw the (marginal) private cost of irrigation on the graph. (Hint: when one more acre is irrigated, how much should be spent?) b. Draw the (marginal) social cost of irrigation on the graph. to 15dman od br.112 of 2 song zoldnob won 107 ST d ogul eiddir ceol ngiswbosb bra sunsyet xet stoluolu) 008 of allt boner amour nisia Toldrob nad zeel to siduob ant storm olduob vedi 1A 20 How many acres will the U.S. farmer irrigate?

2. The figure below shows the demand curve for a U.S. farmer for irrigating his land. It costs the farmer $100 per acre to irrigate the land. Each acre of land irrigation generates salty runoff that winds up in the Colorado River. It costs $50 to desalinate this river water so Mexican farmers can irrigate their crops. a. Price C. 250 Lizella no bsbryg od liw showsmod susY yab labiqyi a no botrons amo01 000, bus 0012 101 og avotlisme ni amoor loto1-1 moon boiner og 0 to salod ograria ou dobioob Toya orlouneven saisT OT odman erit brin 80121 25211 201001or 101 on gaiog at bozognizi xot ont noft Tul 292167 X61 21 entro la Jauon eri osinols0.000 of all boren amoorto bus vigque diw dose & wandu) to 220l migiswbsob od ban mwoiller? (lesvnus basmab Irrigation(acres) D=PB=SB 100 Draw the (marginal) private cost of irrigation on the graph. (Hint: when one more acre is irrigated, how much should be spent?) b. Draw the (marginal) social cost of irrigation on the graph. to 15dman od br.112 of 2 song zoldnob won 107 ST d ogul eiddir ceol ngiswbosb bra sunsyet xet stoluolu) 008 of allt boner amour nisia Toldrob nad zeel to siduob ant storm olduob vedi 1A 20 How many acres will the U.S. farmer irrigate?

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter16: Externalities, The Environment, And Natural Resources

Section: Chapter Questions

Problem 2DQ

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