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: Solve the attachment

A: As shown in the diagram, the initial budget line is BL1 and the original consumption bundle is…

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

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

Q: Refer to the above diagram. Points A, B, C, D, and E show: Multiple Choice that the opportunity cost…

A: Opportunity cost:It refers to sacrificing one good for an additional unit of another good. In…

Q: 3. Consider an exchange environment with two consumers, Consumer 1 and Consumer 2, and two goods, a…

A: Dear student, find a detailed answer and step by step solution in the explanation part…

Q: Suppose Paul, a 3rd grader, has the following utility function over his lunch of Twinkles (t) and…

A: The process by which individuals or entities make choices and allocate resources in order to achieve…

Q: Refer to the below budget constraint figure. The consumer spends her money either on electricity or…

A: A budget constraint , also known as a budget line or budget set , represents the various…

Q: W² 40 Hatfield and McCoy hate each other. The only good they both consume is whiskey. Hatfield's…

A: The utility function for Hatfield is given as The utility function for McCoy is given as The Sheriff…

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: The table shows the 1 manicures What Cake's total is hy when she buys 4 manicures What is the…

A: Utility is the wants satisfying power of a good or service. Total utility is the total amount of…

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

A: Answer is given below

Q: People are more likely to purchase a consumer ratings magazine that reviews new automobiles before…

A: Asymmetric Information: Asymmetric information refers to a situation where one party in a…

Q: A point lying inside the budget line indicates: An unattainable market basket for the consumer.…

A: In consumer theory, the combination of goods and services that a consumer can acquire for his or her…

Q: Conceptually, the efficient level of carbon emissions is the level for which OA. the marginal…

A: In the realm of environmental economics, sustainability meets financial wisdom. This…

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: If 10 million toy cars are sold. which means that: The production of toy cars is currently at an…

A: The social optimum is obtained at the point where the marginal benefits are equal to the marginal…

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 18 Figure 1 MAGAZINES E Budget Constraint A B 17 CDs Refer to Figure 1. A consumer who…

A: E, A, or B onlyExplanation:A consumer who opts to utilize her entire income for purchases would be…

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: 4) Public housing provides a certain level of housing to eligible individuals at a reduced cost. For…

A: Public housing: It is helpful for those with low earnings to have better living conditions, the…

Q: According to the diagram, cheeseburgers cost s each, and seltzer costs s per can. Adjust the diagram…

A: It can be defined as the limitations imposed on an individual, business, government, or any other…

Q: Use the following information for this question: Assume that the following table illustrates amount…

A: Comparative advantage depends on the lower opportunity cost of production of a good. The opportunity…

Q: X* = 0 In this case, what is the optimal level of pollution abatement? O Halfway down the horizontal…

A: In the topic of environmental economics, sustainability meets financial understanding. This…

Q: Suppose a consumer's satisfaction from consuming goods x and y is formulated by the equation U=X³Y².…

A: The term "Lagrange" refers to a method that may be used to determine the maximum and minimum values…

Q: 6. Mark spends all of his monthly income on interstate phone calls and food. His monthly income is…

A: Here we are given consumer's budget which includes his income and the prices of food and phone calls…

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: 10 5 /MC MR 5 Q ATC 10 What level of output is productively efficient?

A: Incase of a monopoly market structure, There exists a single seller. The monopolist maximize its…

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: 4 A line on a graph that shows the maximum combinations of two goods which a consumer can purchase…

A: The economics as a study is based upon the idea that the resources which are present with the…

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: The MB curves in the diagram slope downward because of the law of Multiple Choice O O conservation…

A: The incremental gain or favorable effect that an extra unit of a certain activity or input produces…

Q: 7. Assume that Mei has $100 per month to divide between dinners at a Chinese restaurant and evenings…

A: a. Equation of budget line is given by, PxX+PyY≤M where, M is the budget income, Px is price of good…

Q: Twentyfirst Century Electronics has discovered a theft problem at its warehouse and ha to hire…

A: Optimal number of guards will be determined by the point which provides highest net value for the…

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: 6. Provide a detailed analysis of the Second Welfare Theorem of Economics

A: The second welfare explains that Pareto efficient allocation is possible if all consumers have…

Q: Reler to the production possboty fronter below for a t that producee kce oreams and Jelly beans. The…

A: A production possibility frontier is a curve that shows various amounts of two products that can be…

Q: D1 D2 (A) S2 S1 P 52 (D) (C) Which of the diagrams illustrates the effect of an expected sale next…

A: A demand changes if there is a change in the components of demand and the components are: Change in…

Q: 15. There is a shortage of bottled water in California, and the governor decides that the government…

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: Q6 An has an agriultural industy and a tatile industry. Each economy unit of agricutural autput…

A: There are two industry Agricultural and textile. One unit of agricultural output needs 0.4 unit of…

Q: Let assume China is the domestic country and the USA is the foreign country. An iPod is cost ¥612 in…

A: China is a domestic country. The USA is a foreign country. An iPod costs ¥612 in China. The same…

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: Jane Fontana has an income of $100, and the price of X is $2, while the price of Y is $4. If the…

A: Budget line refers to the combination of goods some one can afford in available of budget.It shows…

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: Comic Books 43210954321 14 13 12 10 7 6 Video Games 1 2 3 4 5 6 7 8 9 10 11 If the graph shown…

A: In economics, a budget constraint refers to the restriction on a person's or a household's ability…

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

person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted to good B yeilds 2units . whereas each hour devoted to good A produces 4 units. state whether 9 units of good B and 12 units of good A are unattainable, efficient, or inefficient.(state all that applies) select one or more attainable inefficient efficient unattainable
Figure 4 10 9 8 7 A 6 ➤ 5 4 0 3 E 2 1 D B 1 2 3 4 5 6 7 8 9 10 × Refer to Figure 4. You have $36 to spend on good X and good Y. If good X costs $6 and good Y costs $12, your budget constraint is AB BC CD DE 0000
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)
Suppose the graph below shows Gilligan's daily production possibilities curve for coconuts and fish. Which points on the graph are efficient? Coconuts (lbs/day) 8 7 6 0 0 O Multiple Choice O O O 1 2 3 4 5 Point A A Fish (lbs/day) Point B C Point C B Both points A and B 6
4.00 3.50 3.00 2.50 2.00 1.50 1.00 D. 0.50 1. 6. 8. 6. 10 11 12 13 14 15 Quantity (thousands of dozens per month) At a price of $1.50 per dozen, how many bagels are supplied per month? 5. 4. 3. 2. Price per dozen bagels
2. Residents in a town are voting to decide where a new library will be built. The residents" homes are on the same street and the "map" of the town is represented below. The letters represent the location of each house. The numbers represent distance in 100 meters (in other words, house 'a' is 100 meters from house 'b' and 1200 meters from house i). Each house- hold would receive a utility of 12 if the library was built in front of that house; utility decreases by I unit as the distance to the library increases by 100 meters. Use the distance markers (the numbers) to indicate where the library should go according to the following aggregation methods:
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…
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
Allison has a golden goose that will lay an egg every year until forever. The first egg will be out next year, and each egg is worth $500. Allison's friend, Eric, offers a price to buy the golden goose from Allison today. The interest rate is 10%. From the cost-benefit analysis, under which of the following offers would Allison be willing to sell the goose to Eric? O A $4,500 B. $5.500 C. Allison would want to sell it to Eric with both $4,500 and $5.500. D. Allison wouldn't want to sell it anyway since the eggs would be laid out forever.
3 3 A good is called "inferior" if: i) There are other goods that consumers prefer to it. ii) Consumers buy more of it as the price falls. A 0000 i) is the definition of an inferior good and ii) is irrelevant. ii) is the definition of an inferior good and i) is irrelevant. i) and ii) together define an inferior good. Neither i) nor ii) define an inferior good.
Person 1 can allocate her 8-hour day between the production of two goods.A and B .Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units State weather 9 units of Goods B and 12 units of Goods A are attainable ,unattainable, efficient or inefficient. State all that applies