The city council divides a community's residents into three groups: individual young adults, families with children, and older adults. The following table summarizes how much each group is willing to pay for each playground Amount Groups Are Willing to Pay for Each Playground Individual Young Adults Number of Playgrounds 1 2 Families with Children Older Adults $400 $2,000 $1,000 $300 $1,800 $900 3 $200 $1,600 $800 4 $100 $1,400 $700 5 $0 $1,200 $600 6 $0 $1,000 $500 7 8 $0 $0 $900 $400 $800 $300 The city council must pay $2,250 to build each playground. Which of the following is a characteristic of playgrounds and what is the optimal number of playgrounds for the township to build? A Playgrounds are nonrival in consumption, and the optimal number of playgrounds is zero. Playgrounds are nonrival in consumption, and the optimal number of playgrounds is two. D Playgrounds are rival in consumption, and the optimal number of playgrounds is three. Playgrounds are nonexcludable, and the optimal number of playgrounds is zero. E Playgrounds are excludable in consumption, and the optimal number of playgrounds is two.

The city council divides a community's residents into three groups: individual young adults, families with children, and older adults. The following table summarizes how much each group is willing to pay for each playground Amount Groups Are Willing to Pay for Each Playground Individual Young Adults Number of Playgrounds 1 2 Families with Children Older Adults $400 $2,000 $1,000 $300 $1,800 $900 3 $200 $1,600 $800 4 $100 $1,400 $700 5 $0 $1,200 $600 6 $0 $1,000 $500 7 8 $0 $0 $900 $400 $800 $300 The city council must pay $2,250 to build each playground. Which of the following is a characteristic of playgrounds and what is the optimal number of playgrounds for the township to build? A Playgrounds are nonrival in consumption, and the optimal number of playgrounds is zero. Playgrounds are nonrival in consumption, and the optimal number of playgrounds is two. D Playgrounds are rival in consumption, and the optimal number of playgrounds is three. Playgrounds are nonexcludable, and the optimal number of playgrounds is zero. E Playgrounds are excludable in consumption, and the optimal number of playgrounds is two.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.11P

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