AcresWillingness to Pay(Dollars)SophiaAmberCedric10246.8183.14438.3.5.16.41Consider the town of Springfield with only three residents: Sophia, Amber, and Cedric. The three residents are trying to determine how large, inacres, they should build the public park. The following table shows each residents' willingness to pay for each acre of the park. Suppose the costto build the park is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?O 4 acresО З асгesO 1 acreO 2 acres

Total surplus, is the total measure of the cost of a thing or administration that is over the normal…

Sophia Amber Cedric 10 24 8. 18 6. 14 4 8 3 1 6. 2 4 1 wn of Springfield with only three residents: Sophia, Amber, and Cedric. The three residents are trying to determi puld build the public park. The following table shows each residents' willingness to pay for each acre of the park. S k is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?

Sophia Amber Cedric 10 24 8. 18 6. 14 4 8 3 1 6. 2 4 1 wn of Springfield with only three residents: Sophia, Amber, and Cedric. The three residents are trying to determi puld build the public park. The following table shows each residents' willingness to pay for each acre of the park. S k is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 10SCQ: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table 12.8 shows the...

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Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table 12.8 shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits include environmental, recreational, health, and industrial benefits.) Using the information in Table 12.8, calculate the marginal costs and marginal benefits of reducing sewage emissions for this city. See Production, Costs and Industry Structure if you need a refresher on how to calculate marginal costs. What is the optimal level of sewage for this city? Why not just pass a law that films can emit zero sewage? After all, the total benefits of zero emissions exceed the total costs.
Table 11-1Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident’s willingness to pay for each acre of the park. Acres Sophia Amber Cedric 1 $10 $24 $6 2 8 18 5 3 6 14 4 4 3 8 3 5 1 6 2 6 0 4 1 7 0 2 0 Refer to Table 11-1. Suppose the cost to build the park is $24 per acre and that the residents have agreed to split the cost of building the park equally. If the residents decide to build a park with size equal to the number of acres that maximizes total surplus from the park, how much total surplus will Amber receive? a. $56 b. $0 c. $26 d. $32
8. Best responses for individual contributions to a public good Larry and Megan each rent one unit of a two-unit apartment building. The building has two separate furnaces located between the two apartments. The renters each control and pay for the heat their furnaces generate and would choose to increase the temperature of their apartments by 30 degrees if the other never turned on their furnace, given that the marginal private benefit (MB) of the 30th degree is equal to the marginal cost (MC) of 1 degree of heat (assume that the MC of heat is constant and that the MB of heat is decreasing). However, each degree of heat paid for by one not only raises the temperature in that apartment by a degree but also raises the temperature in the other apartment by half a degree. degrees of heat before his personal As a result, if Megan were to buy 10 degrees of heat, then Larry would need to purchase only marginal benefit of the final degree was equal to the marginal cost. Use the blue line…
9. Best responses for individual contributions to a public good Dmitri and Frances each rent one unit of a two-unit apartment building. The building has two separate furnaces located between the two apartments. The renters each control and pay for the heat their furnaces generate and would choose to increase the temperature of their apartments by 30 degrees if the other never turned on their furnace, given that the marginal private benefit (MB) of the 30th degree is equal to the marginal cost (MC) of 1 degree of heat (assume that the MC of heat is constant and that the MB of heat is decreasing). However, each degree of heat paid for by one not only raises the temperature in that apartment by a degree but also raises the temperature in the other apartment by half a degree. As a result, if Frances were to buy 40 degrees of heat, then Dmitri would need to purchase only |degrees of heat before his personal marginal benefit of the final degree was equal to the marginal cost. Use the blue…
4. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing.s and Thus, the visual appearance would For the students of the college, the visual appearance of the campus is be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $2,040. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 420 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $12. The benefit of the beautification initiative, as suggested by the survey, is $ Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of the benefit of the beautification…
ANSWER LETTER A As a eco-tourism site, the Kubak crystal caves are renowned for their stalactites and stalagmites.The warden of the caves offers a tour each afternoon at 2pm sharp. The caves can be shown toonly four people per day without disturbing their fragile ecology. Occasionally, however, more thanfour people want to see the caves on the same day. The following schedule lists the people whowanted to see the caves on September 24, 2003, together with their respective times of arrival andreservation prices for taking the tour that day. Customers Arrival Time Reservation price Herman 1:48 P 20 Jon 1:50 14 Kate 1:53 30 Jack 1:56 15 Penny 1:57 40 Fran 1:59 12 Faith 2:00 17 a.) If the tour is “free” and the warden operates on a first-come, first-served basis, what will the total consumer surplus be for the four people who get to go on the tour that day? b.) Suppose the warden solicits volunteers to postpone their tour by offering increasing amounts of cash…
41- A colleague at work takes small amounts of IT supplies such as flash drive for her own personal use, saying that this is a tiny loss to the company. You tell her that if everyone were to take office supplies, then the loss would no longer be minimal . Your rationale expresses which of the following ethical issues: O a Property issues O bPrivacy issues Oc Accuracy issues O d Accessibility issues
Acres Sophia Amber Cedric 1 $12 $24 $6 2 8 18 3 10 4 3 8 3 1 6. 2 6 4 1 7 2 Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric (see the Table). The three residents are trying to determine how large, in acres, they should build the public park. Suppose the cost to build the park is $12 per acre and that the residents have agreed to split the cost of building the park equally. If the residents vote to determine the size of park to builo basing their decision solely on their own willingness to pay (and trying to maximize their own surplus), what is the largest park size for which the majority of residents would vote "yes?" 1 acre 2 acres 3 acres 4 acres
What is an externality?
What is the difference between private costs and social costs?
Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermined technologies. In the second approach, the U.S. government determines which technologies are cleaner and subsidizes their use. Of the two approaches, which is the command-and-control policy?
Name two public goods and explain why they are public goods.