ECONOMICS W/CONNECT+20 >C<
20th Edition
ISBN: 9781259714993
Author: McConnell
Publisher: MCG CUSTOM
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Chapter 4, Problem 5RQ
To determine
The provision of public and private goods.
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PRICE (Dollars per unit of electric cars)
500
450
400
350
300
250
200
150
100
50
0
H
0
O
□
1
0
■
The market equilibrium quantity is
O
3
5
QUANTITY (Units of electric cars)
☐ Supply
(Private Cost)
6
Demand
(Private Value)
Social Cost
units of electric cars, but the socially optimal quantity of electric car production is
To create an incentive for the firm to produce the socially optimal quantity of electric cars, the government could impose a
per unit of electric cars.
units.
of 1
A strategy for consumer 1 in the private provision of public goods model is:
A quantity of public good purchases for each level of public good purchases of consumer 2.
A quantity of public good purchases.
A quantity of public good purchases that maximises 1's utility for each level of public good purchases of consumer 2.
The total quantity of public goods consumed by consumer 1.
O O O O
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49. Table 11-4 There are four homes along Belmont Circle, which surrounds a small plot of
land. The land currently has no trees, and the 4 homeowners - Adams, Benitez, Chen, and
Davis -- are considering the idea of contributing to a pool of money that will be used to plant
up to 4 trees. The table represents their willingness to pay, that is, the maximum amount that
each homeowner is willing to contribute toward each tree.
Adams
Chen
$100
First tree
Second tree
Third tree
Fourth tree
A. 3
B. 2
C. 1
50
D. 4
20
10
Benitez
$115
110
100
50
$120
110
80
40
Davis
$90
Refer to Table 11-4. Suppose the cost to plant each tree is $90. How many trees should be
planted to maximize the total surplus of the four homeowners?
50
30
O
Chapter 4 Solutions
ECONOMICS W/CONNECT+20 >C<
Ch. 4.A - Prob. 1ADQCh. 4.A - Prob. 2ADQCh. 4.A - Prob. 3ADQCh. 4.A - Prob. 1ARQCh. 4.A - Prob. 2ARQCh. 4.A - Prob. 3ARQCh. 4.A - Prob. 1APCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQ
Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7P
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