EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 16, Problem 16.9P
a.
To determine
To state:The property that the pool possess and that it does not possess.
b.
To determine
To state: Whether building the pool would be an efficient use of resources.
c.
To determine
To state: The price that would cover the cost of the pool and the price that would achieve efficient allocation of resources.
d.
To determine
To state: The efficient pricing of the pool.
e.
To determine
To state: The efficient pricing of the pool when the pool has a capacity of 2000 families per day.
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An important question in economics is how to minimize the total cost of pollution reduction (called
the abatement cost, which is considered a "cost to society"). Two companies, Fim 1 and Firm 2,
each emit 10 units of pollution per year. The table below shows the total cost for each company to
reduce its pollution to a given value x. Due to technology differences, is more expensive for Fim
2 to reduce pollution than for Firm 1. When x = 10, no abatement has occurred (it is "business as
usual"); when x = 0, no pollution is emitted.
The table also shows an algebraic formula for each abatement cost. (BTW, it is a common
economic approximation that abatement cost goes up quadratically.)
Below, we solve this for two firms, but the method is applicable to a situation with multiple firms.
Per-firm pollution emissions x
Firm 1 total abatement cost = (10-x)
where x is the amount of pollution
Firm 2 total abatement cost = (20-2x)
where x is the amount of pollution
1.
3.
4.
9.
7.
8.
6.
10
100
81…
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
Number of Playgrounds
Individual Young Adults
Families with Children
Older Adults
1
$400
$2,000
$1,000
$300
$1,800
$900
3
$200
$1,600
$800
4
$100
$1,400
$700
$0
$1,200
$600
6
$0
$1,000
$500
7
$0
$900
$400
8.
$0
$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.
B
Playgrounds are nonrival in consumption, and the optimal number of playgrounds is two.
Playgrounds are rival in consumption, and the optimal number of playgrounds is three.
D
Playgrounds are nonexcludable, and the…
Chapter 16 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 16.2 - Prob. 1TTACh. 16.2 - Prob. 2TTACh. 16.2 - Prob. 1MQCh. 16.3 - Prob. 1MQCh. 16.3 - Prob. 2MQCh. 16.3 - Prob. 1TTACh. 16.3 - Prob. 2TTACh. 16.4 - Prob. 1MQCh. 16.4 - Prob. 2MQCh. 16.7 - Prob. 1MQ
Ch. 16.7 - Prob. 2MQCh. 16.8 - Prob. 1TTACh. 16.8 - Prob. 2TTACh. 16.8 - Prob. 1.1TTACh. 16.8 - Prob. 2.1TTACh. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 10RQCh. 16 - Prob. 16.1PCh. 16 - Prob. 16.2PCh. 16 - Prob. 16.3PCh. 16 - Prob. 16.4PCh. 16 - Prob. 16.5PCh. 16 - Prob. 16.6PCh. 16 - Prob. 16.7PCh. 16 - Prob. 16.8PCh. 16 - Prob. 16.9PCh. 16 - Prob. 16.10P
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