Q = 40 - 0.4P
where P is the price-per-mile which persons are willing to pay (per year) for Q miles of river preserved. You find that the marginal (opportunity) cost of preservation is $25,000 per mile per year. [Hint: You need to derive the market (aggregate) demand curve for a public good.]
There are important trade-offs involved in granting "Wild and Scenic River Status" to portions of a...
There is an issue of how much of a public good- a river- should be protected from further development. There needs to be a recommendation based upon the following information. Every year, 1,000 people benefit from the river, specially for its recreational purposes.A survey estimates that each beneficiary has the same demand function for river preservation: q = 40 - (0.4)(P)- where P is the price per mile which persons are willing to pay every year for q miles of...
Manitoba is considering preserving a very scenic river. The community has 100 people each of whom has a demand given by q=10-0.1p where q is the number of miles preserved and p is the price per mile she/he is willing to pay for q miles of preserved river. The marginal cost of preserving the river is $500 per mile. Draw a full-labelled diagram to depict the problem described above. How many miles would be preserved in an efficient allocation? Explain...
Suppose the state is trying to decide how many miles of a very scenic river it should preserve. There are 50 people in the community, each of whom has an identical inverse demand function given by P = 20 – q, where q is the number of miles preserved and P is the per-mile price he or she is willing to pay for q miles of preserved river. Will the welfare maximizing allocation be reached? Why or why not?
Thank you in advance! Suppose the state is trying to decide how many miles of a very scenic river it should preserve. There are 100 people in the community, each of whom has an identical inverse demand function given by P - 10 1.0q, where q is the number of miles preserved and P is the per- mile price he or she is willing to pay for q miles of preserved river. 1. (a) If the marginal cost of preservation...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...