5) The table below shows portions of the demand curve of three individuals for the water...
Based in the Kaldor-Hicks Compensation Principle, or Potential
Pareto Improvement Criterion, would this policy be a "good
idea"?
1. Assume a city of 1,000,000 people is considering cleaning up fine particulate emissions from its aging coal-fired power plant to decrease the ambient pollution level from 100 ppm to 50 ppm. The clean-up will cost $1,000,000,000. It has been proposed that each person be taxed equally to pay for the pollution clean-up. The individual (not aggregate) demand curves for certain proportions...
Refer to the information below to answer the following question. The table gives the each individual's marginal willingness to pay for three different levels of restoration (think of it like a segmented demand curve for three levels of quantity) Marginal Willingness to Pay for Restoring Bald Eagles Extent of restoration Low Moderate Extensive Marginal willingness to pay (MWTP) Bob 10 5 0 Carlos Anna 50 30 10 MC 25 10 40 40 40 What is the total benefit and total...
Question 6 (1 point) The following equations represent the MWTP (demand) function and the private MC functions in the market for some good where a negative externality (such as pollution) results in damages of $12 per unit of the good produced. MWTP 400 QD MPC 55+0.5QS The market equilibrium level of output will be equal to units. Question 7 (1 point) The following equations represent the MWTP function and the private MC function in the market for some good where...
8. A water management policy proposal is being discussed by City Z to preserve Lake Pearl in its territory. This policy allows City Z to upgrade its water infrastructure and to establish a water quality monitoring program. The goal is to improve water quality of Lake Pearl from Level II (water quality index=50) to Level I (water quality index=100). 1) A stated preference survey among a sample of residents (100 people out of 10,000 total population in City Z) was...
1. Which of the following is not a property of the aggregate demand curve? It shows the relationship between the overall price level and level consumption. It shows the price level on the vertical axis and output on the horizontal axis. The aggregate demand curve slopes downward. It shows the relationship between the overall price level and the level of total demand. 2. When the price level increases people: feel more wealthy. have the same real value of assets, regardless...
3. The chart illustrates your local water comnany's natural monopoly. The diagram shows the demand curve for water, the company's marginal revenue curve. its marginal cost curve (marginal costs are constant), and its average total cost curve. The government wants to regulate the monopolist by imposing a price ceiling. (20 points) a. Label the curves -Demand (D) Marginal Revenue (MR) Marginal Cost (MC) and Average Total cost (ATC) b. If the government does not regulate this monopolist, which price will...
The table below shows a hypothetical demand and supply schedule for CD players. Price, K Quantity demanded, thousand/yr Quantity supplied, thousands/yr 100 10 3 120 9 4 140 8 5 160 7 6 180 6 7 200 5 8 Plot the supply and demand curves on the same diagram Find the equilibrium price and quantity Using the same data, what is the excess supply or demand When the price is K120? When the price is K200? Explain why and in...
This problem asks you to analyze environmental quality as a public good, but using a slightly different approach than was used in the class example. In class we measured environmental quality by the percent abated (20%, 60% etc), this time we will measure environmental quality in terms of the quantity of pollution abated. I ask you to go into some detail about your calculations, to illustrate your understanding intuitively and technically. The Valley of Grimes is inhabited by three people...
5. Three cake makers have very different ways of operating their businesses. The table below shows the total cost for each of them, for making cakes. Quantity of cakes Ciara's total cost Linda's total cost SO $0 1 $8 $12 $20 ut WN Ryan's total cost SO $211311 $ 53 $10 $1919 $33 $53 $25 $28 $16 $24 $32 $40 $48 $29 $29 / / / / a) Calculate the marginal costs for each cake maker. b) Draw the marginal...
These three questions please
Question 37 (1 point) Table 16-1 A monopolistically competitive firm faces the following demand curve for its product: Price (S) 10 4 8 7 6 16 8 10 5 12 4 14 3 16 2 18 20 1 Refer to Table 16-1. The firm has total fixed costs of $20 and a constant marginal cost of $5 per unit. What will the firm do? It will produce 2 units; firms will exit the market in the...