Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 14, Problem 11SQP
To determine
Market where the Coase theorem is applied.
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Bicycle paths are public goods that can be supplied at cost C = 10Q + Q2 where Q measures kilometers of bicycle paths. There are only two people in this city Mr. A and Ms. B. Describe the free-rider problem associated with the supply of this good. Suppose that demand is given by QA = 50 ‒ 0.5P and QB = 25 ‒ P. Find the efficient quantity of paths. Provide a fully labeled demand curve diagram. Calculate the cost of supplying the efficient quantity and suggest how this cost might be recovered from the two consumers
If a boxing fight is shown on pay-per-view television every Saturday at 4 p.m., the demand curve for each fight is given in the
accompanying graph.
Cost ($/fight)
25
20
15
10
5
0
10 20 30
40 50
Viewing households (millions)
If there is a pay-per-view charge to watch a fight, the outcome is
----because
efficient; prices will allocate the program to those who value it the most
efficient; the marginal cost of an additional viewing household is zero
O inefficient; the marginal cost of an additional viewing household is zero
O inefficient; television stations would not always make a profit
Solve a Consumers' or Producers' Surplus Problem.
A sports watch has a price-demand equation given by
p= D(z) = 40-2-0174176a
dollars, which gives the price per watch when a watches are demanded. The price-supply equation for the watch is given by
p= S(x) = 0.6z+4
dollars, which gives the price per watch when z watches are supplied. If the equilibrium quantity is 11, find the consumers' surplus and
the producers' surplus.
The consumers' surplus is. (Your answer must begin with S.)
The producers' surplus is Your answer must begin with $.)
Chapter 14 Solutions
Micro Economics For Today
Ch. 14.2 - Prob. 1.1GECh. 14.2 - Prob. 1.2GECh. 14.2 - Prob. 1.3GECh. 14.2 - Prob. 2.1GECh. 14.2 - Prob. 2.2GECh. 14.2 - Prob. 2.3GECh. 14.2 - Prob. 2.4GECh. 14 - Prob. 1SQPCh. 14 - Prob. 2SQPCh. 14 - Prob. 3SQP
Ch. 14 - Prob. 4SQPCh. 14 - Prob. 5SQPCh. 14 - Prob. 6SQPCh. 14 - Prob. 7SQPCh. 14 - California once proposed legislation that would...Ch. 14 - Prob. 9SQPCh. 14 - Prob. 10SQPCh. 14 - Prob. 11SQPCh. 14 - Prob. 12SQPCh. 14 - Prob. 13SQPCh. 14 - Prob. 14SQPCh. 14 - Prob. 15SQPCh. 14 - Prob. 16SQPCh. 14 - Prob. 1SQCh. 14 - Prob. 2SQCh. 14 - Prob. 3SQCh. 14 - Prob. 4SQCh. 14 - The perfectly competitive profit-maximizing firm...Ch. 14 - Prob. 6SQCh. 14 - Prob. 7SQCh. 14 - Prob. 8SQCh. 14 - Prob. 9SQCh. 14 - Prob. 10SQCh. 14 - Prob. 11SQCh. 14 - Prob. 12SQCh. 14 - Prob. 13SQCh. 14 - Prob. 14SQCh. 14 - Prob. 15SQCh. 14 - Prob. 16SQCh. 14 - Prob. 17SQCh. 14 - Prob. 18SQCh. 14 - Prob. 19SQCh. 14 - Prob. 20SQ
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