Consider an economy with n consumers, one private good and one public good. We think of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider an economy with n consumers, one private good and one public good. We think of the private good as "all other goods," and measure it in terms of money. There aren individuals in = a; In y + xi, where y is the public good, x; is the private good consumed by individual i = 1,... , n, and 0 < a1 < a2 < < an are parameters. Initial endowment of private good of each consumer is given by w;. We donote the aggregate endowment the economy with utility functions U;(x,, y) of the private good by w = is c(y) = cy for some c > 0. Find the optimal provision of the public good as well as how much is provided under voluntary contributions. E wi. The cost of producing the public good Consider an economy with n consumers, one private good and one public good. We think of the private good as "all other goods," and measure it in terms of money. There aren individuals in = a; In y + xi, where y is the public good, x; is the private good consumed by individual i = 1,... , n, and 0 < a1 < a2 < < an are parameters. Initial endowment of private good of each consumer is given by w;. We donote the aggregate endowment the economy with utility functions U;(x,, y) of the private good by w = is c(y) = cy for some c > 0. Find the optimal provision of the public good as well as how much is provided under voluntary contributions. E wi. The cost of producing the public good
Expert Answer:
Answer rating: 100% (QA)
1 The optimal provision of the public good is given by y ncw 2 Under voluntary contributions each co... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Cooperative negotiations focus on which of the following? A . Interests, not people B. One party winning C. Agreeing on each line item in a negotiation D. The parties' emotional response to the issue
-
Consider an economy with two individuals. Individual 1 has (inverse) demand curve for a public good given by P1 = 60 - 2Q1, while Individual 2 has (inverse) demand curve for the public good given by...
-
Problem 4 (11 points) Consider an economy with only 3 goods being produced and consumed: goods X, Y, and Z. The evolution of this. economy in terms of prices and quantities is reported in the table...
-
1.3 WANEFMAC7 1.3.007. Find the equation of the given linear function. \[ f(x)= \] WANEFMAC7 1.3.015. Find the slope of the given line, if it is defined. (If an answer is undefined, enter UNDEFINED.)...
-
What are the two primary purposes of export packing?
-
If the cost of living is lower in a foreign country than in the United States, should expatriates be paid less than they would be at home? Explain your position. Who should ultimately decide whether...
-
The Miller Company purchased a new headquarters building on January 1 at a comme cost of \($40\) million. The building is expected to last 20 years, at which time its residual value is expected to be...
-
Arnold Palmer Hospital one of the nations top hospitals dedicated to serving women and children is a large business with over 2,000 employees working in a 431-bed facility totaling 676,000 square...
-
Hi Sir/ Madam, Can you please show me how to solve the questions below? 1.Assume the current U.S. dollar-yen spot rate is 109.00/ $. Further, the current nominal 360-day rate of return in Japan is...
-
Jack Tasker opened his Auto Repair Shop in November 2023. The balance sheet at November 30, 2023, prepared by an inexperienced part-time bookkeeper, is shown below. Required Prepare a correct balance...
-
After reviewing the cost, privacy, functionality and various features that Moodle has to offer, what is most appealing about this program to a potential client? Is there any particular function that...
-
Water, initially at \(25^{\circ} \mathrm{C}\), is slowly flowing through a \(1 \mathrm{~cm}\) diameter tube whose wall temperature remains constant at \(-10^{\circ} \mathrm{C}\). The water velocity...
-
The entry length problem discussed in Section 13.5.1 can be analyzed using the boundary layer equations for a flat plate. The only caveat is that the thermal boundary layer must be small compared to...
-
Engine oil at a rate of \(0.05 \mathrm{~kg} / \mathrm{s}\) flows through a \(3 \mathrm{~mm}\) diameter tube that is \(30 \mathrm{~m}\) long. The oil has an inlet temperature of \(40^{\circ}...
-
A capacitor initially has a charge of magnitude \(q\) on each plate. When a dielectric is inserted between the plates, the bound surface charge on the two dielectric surfaces facing the plates has a...
-
Explain why the value of pollution permits in one area of the country rose 20 percent per year, while in another remained unchanged from year to year? What would you expect to occur as a result of...
-
Please do it in original and focus on the given!!! Compiler Construction Programming answers should be written in some notation approximating SML or OCaml. (a) Describe what is meant by tail...
-
Read Case Study Google: Dont Be Evil Unless and answer the following: Why do you think Google was adamant about not wanting to supply information requested by the government concerning the Child...
-
Zach lives two periods. He earns $ 10,000 in the first period and nothing in the second period. The rate of return is 10 percent, and there is an income tax (applied to labor and interest earnings)...
-
Assume that in a given country, tax revenues, T , depend on income, I , according to the formula T=4000+.2I Thus, for example, when a household has an income of $ 50,000, its tax burden is - 4,000+...
-
California law requires registered domestic partners to treat their earnings as common property for state tax purposes. Because federal tax law generally respects state property law, the Internal...
-
Modify Table 10-1 web site for to indicate whether each control listed there is preventive, detective, or corrective in nature. 10.2Table 10-1 suggests that restricting physical access to inventory...
-
The Quality Building Supplies Company operates six wholesale outlets that sell roofing materials, electrical and plumbing supplies, lumber, and other building materials to general contractors in a...
-
The following documents are used in the revenue cycle; Customer order Sales order Sales invoice Credit memo Picking ticket Packing slip Bill of lading Monthly statement Remittance advice ...
Study smarter with the SolutionInn App