Suppose that the logging industry in Canada is unregulated, and anyone can cut-down a tree on public land and sell it. We would expect to see trees cut-down since the marginal social cost of cutting down trees the price of trees. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a too many; equals b too many; is below the optimal amount of; equals too many; is above

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Mary is planning to travel to a country where there is some risk of contracting malaria. The market price for the medication that prevents malaria is $400 (the preventative medicine is not covered by insurance). It would take her 2 hours to visit her doctor and get the prescription filled. The opportunity cost of her time is $50/ hour. If she contracts malaria we assume that she will be sick for two weeks and unable to work. Expenses for medication, doctors' visits, and lab tests to treat the malaria will be $1500. She will lose wages and benefits of $1000 for each week she is away from work. Assume the cost of the pain and suffering is $2000. Mary believes that her chance of getting malaria without preventative medicine is about one in 10. A) What is the maximum price that Mary would pay if insurance covered the full cost of treatment if she got malaria? B) What is the maximum price that Mary would pay for the medication if she has no insurance?

If it costs $6 to purchase & plant a tree, what is the socially optimal number of trees to be purchased? answer: [x] trees