Question
In: Economics
The following table shows how the private marginal benefit enjoyed by John, Mary, Loren, and all...
The following table shows how the private marginal benefit enjoyed by John, Mary, Loren, and all other consumers of outdoor rock concerts varies with the number made available by a city government per summer.
A. Derive the demand curve for rock concerts assuming an outdoor rock concert is a public good and graph the problem. Note: It is not necessary to derive demand using algebraic equations, this can be illustrated graphically.
| Consumers | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| John | 150 | 125 | 100 | 75 |
| Mary | 125 | 100 | 75 | 50 |
| Loren | 100 | 75 | 50 | 25 |
| All Others | 600 | 400 | 200 | 100 |
B. If marginal cost of producing rock concerts is $1,000 no matter how many are produced, what is the efficient number of concerts to have each summer? What would be the efficient number of concerts to produce if the marginal cost of production were $425 instead of $1,000?
Solutions
Rahul Sunny answered 6 months agoRelated Solutions
Table C (below) shows the schedules for marginal social cost, marginal private benefit, and marginal social benefit of a university education for each student.
Table C (below) shows the schedules for marginal social cost, marginal private benefit, and marginal social benefit of a university education for each student.
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Income Range
MPC
$0-20,000
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$20,001-40,000
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$40,001-60,000
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$80,000 and above
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Good A
Good B
Good C
Quantity
Total Benefit
Marginal Benefit
MB/P
Total Benefit
Marginal Benefit
MB/P
Total Benefit
Marginal Benefit
MB/P
0
0
0
0
1
50
63
70
2
95
122
133
3...
Exercise 1: The following table shows the total utility or the marginal utility of three commodities,...
Exercise 1:
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Price Quantity
18 0
16 4
14 8
12 12
10 16
8 20
6 24
4 28
2 32
0 36
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The following table shows the demand curve facing a monopolist who produces at a constant marginal...
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who produces at a constant marginal cost of $10:
Price
Quantity
18
0
16
4
14
8
12
12
10
16
8
20
6
24
4
28
2
32
0
36
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