Question

Please help me in both questions, thank you very much :)

QUESTION 2 The UQ Union is considering two expenditure options. It can either buy 20,000 ice-creams (each costing $2.50) to distribute to UQ students or it can construct a skate park costing $50,000 for students to freely use. There are approximately 50,000 students at UQ and each student values an ice-cream (and every additional ice-cream) at $2.50 and the use of the skate park at $2.50 Which of the following statements are true The total summed MB for the skate park is $50,000 The total summed MB for the skate park is $125,000 when considering all students ם The total summed MB for ice-creams is $125,000 and the MC is $50,000, so choosing this option would not make economic sense For each ice-cream consumed, the MB equals the MC QUESTION 3 Nikola has developed a new tablet that instantly cures headaches. Nikola is kind and publishes the recipe on the internet. Thomas develops a capsule that despite its different recipe, also instantly cures headaches. Thomas immediately patents his recipe, which means that only people that pay Thomas can use the recipe. The patent will last 20 years Select the item from the list provided to make the following statements true The marginal cost for someone to adopt Nikolas recipe, assuming everyone has access to the internet, would be 2. Common 3. Collective 4. Binary category 5. Tragedy of the Commons 6. Non-rivalrous 7. Excludable YDue to the patent, Thomas' recipe must be considered as being The tablet produced by Nikola's recipe, assuming 8. Rivalrous 9. Private 10.0 11. Publi 12. Spectrum everyone has access to the internet today, is an example of a good.

Answer 1

ques 2 ) Option d is the answer

cost of each ice cream,= marginal cost = $2.50

benefit derived by students from consumption = $2.50

so for each ice cream , marginal benefit = marginal cost .

ques 3 ) Marginal cost for someones to adopt Nikola's recipe , assuming everyone has access to Internet would be 0 as nikola has published the recipe online its cost would be 0 to access the recipe and make the tablet . .

Due to patent , Thomas recipe must be considered as being A PRIVATE GOOD because the recipe of capsule cannot be accessed and capsule cannot be purchased unless price is paid for it .

The tablet of nikola , assuming everyone has access to Internet today is an example of PUBLIC. good as Public goods are non excludable and marginal cost of each unit is 0