Consider an economy with three consumers, each with a marginal benefit for a public good of MB = 10-q. If the marginal cost of providing the good is $4 per unit, what is the efficient level of Output? [Round your answer to 2 decimal places when needed]
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![Consider an economy with three consumers, each with a marginal benefit for a public good of MB
= 10–q. If the marginal cost of providing the good is $4 per unit, what is the efficient level of
output? [Round your answer to 2 decimal places when needed]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14369b52-2c1a-42af-9b79-322292fda5dd%2F509616be-5ea1-4c29-b8ae-aa6bad8dfd11%2Fbr72b5_processed.png&w=3840&q=75)
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- Are utilities a public good, by definition?Individuals A, B and C have the following individual demand curves: Q=7-5P Q=10-P Qc=18-3P Make a price quantity chart for each consumer. Then add a column showing the total quantity demanded for a private good. Next show the quantity price chart showing the total demand for a public good. Graph and label all 5 demand curves on the same graph (see provided graph sheet). If the marginal cost is $4 a unit how many units should be bought if the good is a private good? How many units would each individual buy? If the marginal cost is $6 a unit, to the nearest .1 how many units should be bought if the good is a public good? To the nearest S 0.01 what are the Lindahl prices each person is willing to pay? Do consumers of public goods have the same incentives to reveal their true valuations of Public goods as they do of Private goods? Why or why not?The figure to the right shows the marginal cost of pollution abatement for two firms, A and B. The firms were initially abating 46 units of pollution each. Now they can trade pollution permits at a price of $22. As a result, firm A sells permits and firm B buys permits. Both firms are now better off and their total saving will be $ (Enter your answer rounded to the nearest whole number.) Dollars per Unit ($) 34 22 10 The Efficiency of Tradable Pollution Permits MCB 31 46 61 Quantity of Pollution Abatement MCA N
- The following table shows how the marginal benefit of a service varies for five consumers. Quantity 1 2 3 4 Serkan 150 125 100 75 Asuman 125 100 75 50 Bahar 100 75 50 25 Murat 200 150 125 125 Meriç 600 400 200 150 Derive the demand curve for this service assuming that it is a public good. If marginal cost of the good is 850, what is the efficient output of the public good? If marginal cost of the good is 425, what is the efficient output of the public good? If marginal cost of the good is 850, what is the efficient output assuming it is private good?2) The following table shows how the marginal benefit of a service varies for five consumers. Quantity 1 4 Serkan 150 125 100 75 Asuman 125 100 75 50 Bahar 100 75 50 25 Murat 200 150 125 125 Meriç 600 400 200 150 a) Derive the demand curve for this service assuming that it is a public good. b) If marginal cost of the good is 850, what is the efficient output of the public good? c) If marginal cost of the good is 425, what is the efficient output of the public good? d) If marginal cost of the good is 850, what is the efficient output assuming it is private good?There are 2 people in a community, A and B. The function of the demand for public goods from each of these individuals is: PA = 100 - G P3 = 140 - G where P is the maximum price level that each individual is willing to pay for each unit of public good G. Marginal costs for the production of each unit of public good are constant 120 Tokens. a. Illustrate in a graphical analysis the function of demand and supply (supply) of this public good. What is the efficient provision of public goods G? Describe the prerequisites for the efficient condition (supply) of public goods. b. Determine the Lindahl price for individual A and individual B. c. If later, individual C joins the community, with PC = 30 - G. Will Individual C contribute to the provision of the public goods? Explain.
- In the market for petroleum products the inverse private supply and demand are represented by: Supply: P = 10.0 + 0.075Q Demand: P = 42.0 – 0.125Q The production of petroleum causes pollution which has the following cost: E = 0.05Q What is the market outcome in terms of Price and Quantity? Calculate and then illustrate on a large graph (you’ll use the graph throughout the question). What is the socially efficient outcome in terms of Price and Quantity? Calculate and then illustrate on the same graph you used for part a. What is the deadweight loss to society when it is at the market outcome? Calculate and then illustrate on the same graph you used for part a. What tax should be put on this market in order to move it to the efficient solution? Be sure to clearly indicate the monetary value of the tax and what it is put on. After the tax is placed, what price does the consumer in this market see? What price does the supplier see? How much revenue does the government…Please solve part d,e and f!!! Three roommates, Jim, Saleem, and Ritesh, are thinking about buying a new speaker system for their apartment. The speaker system would be a public good if they buy them, and the total cost would be $300 which would be shared equally among the three. Jim values it at $80, Saleem values it at $140, and Ritesh values it at $70. If the speakers are purchased each person gets a payoff equal to their net valuation (valuation minus cost share); if they are not purchased each gets zero payoff. a)Is it socially efficient that they buy the speaker system? With reference to the definition of a public good, why or why not? The roommates decide that they will write down their net valuations, and if these reports sum to more than zero, they will buy the TV (sharing the cost equally), or else they will not. b) If all were to report their true valuations, what payoff would each agent earn? c) Show that if Jim and Ritesh submit their true net valuation, then Saleem does…2) The following table shows how the marginal benefit of a service varies for five consumers. 田 Quantity 1 4 Samuel 150 125 100 75 Adam 125 100 75 50 Bronn 100 75 50 25 Michael 200 150 125 125 Matt 600 400 200 150 a) Derive the demand curve for this service assuming that it is a public good. b) If marginal cost of the good is 850, what is the efficient output of the public good? c) If marginal cost of the good is 425, what is the efficient output of the public good? d) If marginal cost of the good is &850, what is the efficient output assuming it is private good?
- There are three groups in a community. Their demand curves for public television in hours of programming, T, are given respectively by W₁ = 200 - T W₂ = 240 - T W3 = 320 - T Suppose public television is a pure public good that can be produced at a constant marginal cost of $210 per hour. What is the efficient number of hours of public television? The efficient number of hours is (Enter your response rounded to two decimal places.) How much public television would a competitive private market provide? Assuming a competitive private market would provide public television, it would produce hours of public television. (Enter your response roundedThe following table shows how the marginal benefit of a service varies for four consumers: a.)If the marginal social cost of the good is $2,000, what is the efficient output assuming that it is a pure private good? b.)If the marginal social cost of the good is $2,000, what is the efficient output assuming it is a pure public good?Explain the efficiency condition for Public Goods
