Question
In: Economics
There are 3 people with different marginal willingness to pay schedules for levels of environmental quantity...
There are 3 people with different marginal willingness to pay schedules for levels of environmental quantity Q: A’s marginal WTP=$20-Q; B’s marginal WTP=$10-Q; and C’s marginal WTP=$5-Q. The marginal cost is given by MC=3+Q. 1. Please draw each person’s marginal WTP curve, the aggregate marginal WTP curve, and the marginal cost curve. 2. Please calculate the optimal provision level of Q and find the optimal provision point in your graph. Are there any free riders? 3. Please calculate the actual provision level of Q when there is no government intervention. Explain your results. Are there any free riders?
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Rahul Sunny answered 1 year agoRelated Solutions
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If an analyst imputes marginal willingness to pay (demand) for
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If an analyst imputes marginal willingness to pay (demand) for green food to be equal to:...
If an analyst imputes marginal willingness to pay (demand) for
green food to be equal to: P = 245 - 1.5Q, what is the change in
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Suppose that a monopoly faces the demand, marginal revenue, and cost schedules below. Quantity Price Marginal...
Suppose that a monopoly faces the demand, marginal revenue, and
cost schedules below.
Quantity
Price
Marginal Revenue
Marginal Cost
Average Total Cost
1
230
230
100
150
2
210
190
100
125
3
190
150
100
116.6666667
4
170
110
100
112.5
5
150
70
100
110
6
130
30
100
108.3333333
7
110
-10
100
107.1428571
8
90
-50
100
106.25
9
70
-90
100
105.5555556
10
50
-130
100
105
What quantity maximizes profit?
The monopoly Q =...
In environmental valuation, Total Willingness to Pay is made of the following values: a.) use value...
In environmental valuation, Total Willingness to Pay is made of
the following values:
a.) use value + option value + nonuse value
b.) use value + judgement value + nonuse value
c.) use value only
d.) use value + nonuse value
e.) use value + option value
2. Assume the following two demand curves: Marginal Willingness to Pay = 18 - .45 Q...
2. Assume the following two demand curves:
Marginal Willingness to Pay = 18 - .45 Q
Marginal Willingness to Pay = 26 – 3 Q
Solve for the
following:
a)Start each curve at a price of $5 and increase the price to
$7.50, what is the percent change in quantity demanded on each
curve (hint: watch your signs)
b)Find the elasticity of each of these curves at this price
change.
c) Are (A) and (B) elastic or inelastic.
d) Describe...
2. The following report is a cross table of consumers' willingness to pay for different types...
2. The following report is a cross table of consumers'
willingness to pay for different types of commodities. Please
explain the difference in value of different types of commodities
according to the content of the table.
value
df
p
Pearson χ2
749.50
9
.000
有效觀察值的個數
1274
types of commodities
total
A
B
C
D
Value of commodities
Less than 30
Number
311a
118b
146b
18c
593
Within the product type
95.4%
37.3%
46.2%
5.7%
46.5%
31~60
Number
5a
151b
115c...
The accompanying table shows Tom and Ray's total willingness to pay for different amounts of public...
The accompanying table shows Tom and Ray's total willingness to
pay for different amounts of public recreational areas (REC), which
is measured in acres. The marginal cost of one acre of recreational
area is $1,000.
Tom's willingness to
pay Ray's
willingness to
pay REC
(acres)
$2,000 $1,000 1
3,000 1,800 2
3,800 2,500 3
4,300 3,100 4
4,500 3,600 5
4,600 4,000 6
4,600 4,300 7
4,600 4,400 8
4,600 4,400 9
Part A: What is the socially optimal level of recreational
areas? Assume you cannot purchase partial acres. Explain your
answer.
Part B: What should be the tax burden...
You pool together two different marketing surveys to see what the willingness to pay for a...
You pool together two different marketing surveys to see what
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$20, with standard deviation of 5, and 45 people were surveyed.
Survey two has a mean of 30, with standard deviation of 10, and 50
people were surveyed. The null is no difference. The
test-statistic, when computed, is 6.06. Would you reject the
null?
3. a) suppose that hedonic wage studies indicate a willingness to pay $60 per person for...
3. a) suppose that hedonic wage studies indicate a willingness
to pay $60 per person for a reduction in the risk of premature
death from exposure to asbestos of 1/80,000. if the exposed
population is 5 million people, what is the implied value of a
statistical life?
b) suppose that an impending environmental regulation to control
asbestos is expected to reduce the risk of premature death from
5/100,000 to 2/100,000 per year in that exposed population of 5
million people....
6. Assume market demand characterized by MWTP(Q)=42-Q (MWTP=marginal willingness to pay, and is another term for...
6. Assume market demand characterized by MWTP(Q)=42-Q
(MWTP=marginal willingness to pay, and is another term for demand)
and market supply characterized by MC(Q)=6+2Q (MC is marginal cost
– recall the supply curve is also a firm’s marginal cost curve in a
competitive market). Further, assume a negative externality equal
to $6 per unit transacted.
a. Solve for the equilibrium quantity transacted in a market
without interventions as well as the efficient (socially optimal)
quantity.
b. In an appropriately labeled graph,...
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