Suppose 10 citizens each derive marginal benefit from traffic lights according to the function MB = 10 - Q. If traffic lights cost $10 each to produce, what is the efficient quantity of traffic lights? A. 1 traffic light OB. 8 traffic lights C. 12 traffic lights O D. 9 traffic lights

Suppose 10 citizens each derive marginal benefit from traffic lights according to the function MB = 10 - Q. If traffic lights cost $10 each to produce, what is the efficient quantity of traffic lights? A. 1 traffic light OB. 8 traffic lights C. 12 traffic lights O D. 9 traffic lights

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 2. Which point is inefficient? * A, B,D,& F A&B E A&D с E Good X

A: Here, the given graph shows the production possibility curve with good X in x-axis. An inefficient…

Q: On this least-cost abatement curve, how much (GECO2) could we abate if we spent €8.37 billion?

A: Since you have posted multiple questions, as per guidelines we can solve only 1st question.

Q: Graphically demonstrate how the following economic events influence (ceteris paribus) the…

A: As the existing firms are making strong profits in the market, it attracts new firms who start…

Q: 14. Ii an increase in the price ofpetre) ficseases the damand fon fulelent, hybrid cars, then 2.…

A: Here, an increase in the price of petrol increases the demand for gas/electric hybrid cars.

Q: None

A: Referenceshttps://www.investopedia.com/budgeting-4689726

Q: Select the THREE correct statements about the graph Select one or more: O a. This graph conveys the…

A: The indifference curve would cause the combinations of the goods which give the same utility. The…

Q: How do you calculate marginal benefits? For example, what are the marginal benefits of consuming a…

A: The marginal benefits show the incremental change in benefit to a consumer by consuming one…

Q: The price of a ticket is $18 and is equal to the marginal cost of attending each game. Assuming that…

A: The marginal gain is the increase in overall benefit that an extra unit of an intervention brings.…

Q: Briefly explain how an economy could shift production from an inefficient point of production (such…

A: The Production Possibility Frontier (PPF) refers to a graphical representation of the different…

Q: our marginal benefit from eating candy bars is shown in the table below: Marginal Benefit Candy (MB)…

A: The change in total utility or benefit when one additional unit is consumed is known as the marginal…

Q: 2. The following table gives information about the quantity of glasses of lemonade sold on sunny and…

Q: 5. Alaina has eaten two bowls of ice cream at La Michoacana. She considers eating an additional bowl…

A: Answer is given below

Q: 7 This figure below shows the payoffs involved when Sarah and Joe work on a school project together…

A: Nash equilibrium is attained when both the players attain that outcome from which none of them wants…

Q: XERCISE 1 Below is a production possibilities table for consumer goods (Food) and capital goods…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: 10 please quickly thanks ! Researchers have observed that both household consumers and large-scale…

A: The percentage with which the quantity demanded of a product changes when their is a change in the…

Q: Given the budget constraint $1000-$20Qx+ $100Qy, what is the maximum amount of good Y that can be…

A: Budget constraint depicts the different combinations of two goods that a consumer can buy with a…

Q: The table below shows the marginal benefit for various inputs. Assume that each level represents a…

A: The concept of Marginal benefit suggests the intention of an individual to pay an additional amount…

Q: Consider an uncongested freeway. Which of the following statements is true? a. There are too many…

A: Socially optimum level of output is when the equilibrium level of output is achieved by the…

Q: Question 3 Part a John has $100 that he can spend on milk and gas. A gallon of milk costs $5.…

A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…

Q: Susan is a talented artist who sells hand-crafted goods on her website. Susan currently crafts and…

A: A graphical representation of the different combinations of two goods or services (here, crochet…

Q: Please correct answer and don't use hend raiting

A: Budget Constraint OverviewA budget constraint represents all the combinations of two goods that a…

Q: 4. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification…

A: Excludable - A good is excludable if some people can be prevented from consuming the good.…

Q: Figure 14.4 383.Figure 14.4 shows three possible shifts in the production possibilities frontier of…

A: The production possibility frontier (PPF) is a curve that is used to discover the mix of products…

Q: A college wishes to produce an effigy for the student carnival. The studies prerequisites have made…

A: Given information Fixed cost of producing effigy=$2008 Variable cost=$0.90 per effigy When Selling…

Q: -sume we are measuring coffee on the horizontal axis and flowers on the vertical axis. The…

A: A budget constraint refers to a representation of the limitations or boundaries on the consumption…

Q: Weekly Income: $28 Price of Soup: $5 Price of dessert: $3 i) How much dessert should be consumed at…

A: Answer - Given in the question - Weekly Income: $28Price of Soup: $5Price of dessert: $3

Q: Categorize each of the following five goods as a Private Good, Common Good, Club Good, or Public…

A: Private goods are items that belong to an individual or a group and cannot be used by anyone else…

Q: 4. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification…

A: Excludable - A good is excludable if some people can be prevented from consuming the good.…

Q: Refer to the accompanying table. If the price of a t-shirt is $10 and the price of a sweater is $40,…

A: Utility maximisation occurs at the point where the marginal utility per dollar of the 2 goods has to…

Q: Suppose the price of good X increases and consumen good Y? a. Good Y is a normal good. b. Good Y is…

A: A consumer is an individual or entity that purchases and uses goods, products, or services to…

Q: he graph shows the budget line for a consumer who only ys cookies and magazines. If the consumer's…

A: Budget line depicts the combination of two goods that a consumer can afford, given the prices of two…

Q: of shirts Total benefit 1 16 31 3. 45 4. 58 5 70 Reference Ret 9-5 (Table: Marginal Benefit of…

A: Marginal benefit is the additional benefits earned with an additional unit of good. Marginal benefit…

Q: Assume that a consumer has a given budget or income of $24 and that she can buy only two goods,…

A: Opportunity cost is the relationship between a given economic option and the best option that comes…

Q: magine a country XYZ that produces only two goods—chairs and tables. Together, the chairs and tables…

A: The production possibilities curve shows the graphical tradeoff between different combinations of…

Q: DO Units of Variable Input 1 2 3 5 8 Price/Unit Total Cost of Input 2 2.5 3 45 2 6 Marginal Input…

A: Input cost is the expenses/ the amount of money incurred for producing a good or service. It…

Q: Use th following information to answer the two questions that follow. For each question, please type…

A: Given At a price of $300, 100 students will attend and if the price is increased by $10 then the…

Q: P3 P2 P1 - D . A Q Q2 Q3 Q. Q5 Qs Q7 Refer to Figure 4.2. The demand curve A indicates that O the…

A: Price elasticity is used to measure changes in demand due to changes in the price of the goods.

Q: In this market, the equilibrium price is s per box, and the equilibrium quantity of oranges is…

A: At the equilibrium point, the demand and supply curves intersect each other. In this market, the…

Q: Use the following fgure to answer Question 11-20 Figure. Market structure and social we nthe above…

A: A firm in perfectly competitive market charges price equal to marginal cost. So, the quantity…

Q: Suppose that 10,000 people are willing to spend a maximum of $20 each to preserve one acre of…

A: In the study of behavioral economics, willingness to pay or WTP is defined as the maximum price, at…

Q: This is a schedule of the total benefits and total costs for product "X 2 Quantity Total Benefit 9 1…

A: In the above question, it is given that : A schedule of total benefits and total costs for product…

Q: 1. Explain what is meant by an Inferior Good. What information is required to establish whether a…

A: Normal good is one whose market demand is in direct relation with the consumer's income, i.e., the…

Q: . Changes in incentives Suppose the large number of bike accidents in a small town results in new…

A: The likelihood/Probability is the proportion of the probability that an occasion will happen in a…

Q: 7. The best alternative foregone for any choice is known as the associated cost consumer's marginal…

A: Since you have posted multiple questions as per the guidelines we can solve only one question per…

Q: 4. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification…

A: Detailed explanation: Classification as a Public Good:Non-excludable:If it is impossible to stop…

Q: person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted…

A: When talking about production ability, it provides information about how much goods are be generated…

Q: All else equal, airline tickets are typically more expensive if bought close to the date of travel.…

A: Businesses employ price discrimination to optimize revenue by charging clients various prices…

Q: Suppose the price of reusable straws is $25 and the price of Apple Air Pods is $100. What is the…

A: You will pay $100 for Apple air pod From 100 you can buy 100/25=4 reusable straws

Question

Suppose 10 citizens each derive marginal benefit from traffic lights according to the function MB = 10 - Q. If traffic lights cost $10 each to produce, what is the efficient quantity of traffic
lights?
A. 1 traffic light
OB. 8 traffic lights
O C. 12 traffic lights
O D. 9 traffic lights

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Defining optimal quantity

VIEW

Step 2: Choosing the correct option

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Dr Rafiu is planning to send his son to study Finance either at KFUPM or Imam Abdulrahman Bin Faisal University, ceteris paribus. When the session is about to start, the school fees of KFUPM increases while that of Imam Abdulrahman Bin Faisal University remain the same. So, Dr Rafiu decides to enroll his son at Imam Abdulrahman Bin Faisal University. (a) What kind of goods can you classify the two universities from the perspective of Dr Rafiu? (b) What is the nature of elasticity facing Dr Rafiu (hint: elastic, inelastic, Unitary)
1 As a principal trying to determine whether to spend $20 per student for access to an online textbook program, all I need to know is whether the marginal benefit for each student is greater than $20. Explain.
Sketch the following budget constraints: PX PY Income A RO 50 100 RO 5000 B 100 150 5000 C 50 200 2000 D 20 8 800
741 Ny 7:0 Mond Content X + ultra/courses/_99030_1/cl/outline manipic cempo me manipic accompis. INIU Force Completion. This test can be saved and resumed later. BILLETTE Your answers are saved automatically. * Question Completion Status: QUESTION 1 The goal of the consumer is to maximize the total utility or satisfaction derived from their purchase choices, given the unique budget constraint. To calculate total utility of a given combination of T-shirts and movies, one would use the following approach: O a. For a given combination of T-shirts and movies, survey a group of individuals to determine an average for utils to be assigned to the number of T-shirts and movies. O b. For a given combination of T-shirts and movies, use Google to identify the number of utils associated with the number of T-shirts and movies and thenlum them. O c. For a given combination of T-shirts and movies, assign a number of utils to that combination. O d. Use utils as a measure of utility, assigning a…
12. Answer please do;!
6
4. Sketch the following budget constraints: PX PY Income A RO 50 100 RO 5000 100 150 5000 50 200 2000 D 20 8. 800
Shoes 16. What is PButter/pShoes? a. ¹5 b. 5 C. ¹3 d. 3 30 15 Butter Refer to Diagram 2 for question 16,17,18 and 19
INTR.27 A city is debating whether or not to build a new park. The city owns the land, having purchased it 50 years ago for $25,000. A local restaurant developer has offered $700,000 for the land. The development costs for the park would be $100,000. What is the minimum amount of the benefits for the park development in order to be rational for the city? a $100,000 b $125,000 c $800,000 d $825,000
Imagine a country XYZ that produces only two goods—chairs and tables. Together, the chairs and tablesindustries use all of the economy’s factors of production. The table below shows the productionpossibilities for XYZ:Production Possibilities for XYZChairs Tables600 0450 150300 250150 325 0 375 use the slope (rise/run) to solve it and describe what happen a. What is the opportunity cost of increasing chairs production from 450 chairs to 600chairs? b. What is the opportunity cost of increasing tables production from 250 tables to 325tables?
QUESTION 5 Suppose there are two consumers A and B, and two goods x and y. A's utility function has the following form UA = XA - (XR)-1. Which of the following is true? O Consumer A's consumption of good x exhibits a negative externality. O Consumer A's consumption of good x exhibits a positive externality. O Consumer B's consumption of good x exhibits a negative externality. O Consumer B's consumption of good x exhibits a positive externality. QUESTION 6 If we write possible outcomes as (Utility of A, Utility of B), which of the following outcomes would a Utilitarian social welfare function select O (19, 1) O (7, 7) O (-1, 22) O (0, 13) QUESTION 7 In the hotelling model, suppose firm 2 locates at 45 meters. Which of the following location choices for firm 1 gives highest profits? O 50 meters O 49 meters O 44 meters
D Question 18 Burgers 6543210 10 0 5 TTTTT o O 20 O 24 0 P 4 B C 8 Budget: $10 Burgers: $2 Bus Tickets: 50 cents D E 。. 12 Bus Tickets If the consumer spends all his money on bus tickets how many bus tickets can he afford to buy? 16 F 20 24