A city mayor wants to increase number of trees in the public area. Number of city...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A city mayor wants to increase number of trees in the public area. Number of city populaton is 15. Marginal cost to plant a tree is $25. Marginal beneft function for 5 people is 100 - 5Q, and for the other 10 people is 50 2.5Q, where Q is a number of trees planted in that city public area. a. Draw each Marginal Benefit (MB) and Marginal Cost (MC) curve in diagram. What is the maximum number of trees could be planted if the city population do not share their cost? What strategy should be taken by the city population when they are not sharing the plantation cost and there is no trees planted in public area? Would it be possible that the city population will not plant the tree at all? (7 points). b. Draw Marginal Social Benefit curve. Calculate number of trees planted at the social optimality level (7 points). c. If the number of population is increasing linearly, what will be happened in question (a) above? (4 points) d. Is it possible to use Coase approach, is it possible that the city population reach consencus on output efficiency at the initial condition? (4 points) e. Same with question (d): what if the number of city population becomes 100 thousand? (3 points) A city mayor wants to increase number of trees in the public area. Number of city populaton is 15. Marginal cost to plant a tree is $25. Marginal beneft function for 5 people is 100 - 5Q, and for the other 10 people is 50 2.5Q, where Q is a number of trees planted in that city public area. a. Draw each Marginal Benefit (MB) and Marginal Cost (MC) curve in diagram. What is the maximum number of trees could be planted if the city population do not share their cost? What strategy should be taken by the city population when they are not sharing the plantation cost and there is no trees planted in public area? Would it be possible that the city population will not plant the tree at all? (7 points). b. Draw Marginal Social Benefit curve. Calculate number of trees planted at the social optimality level (7 points). c. If the number of population is increasing linearly, what will be happened in question (a) above? (4 points) d. Is it possible to use Coase approach, is it possible that the city population reach consencus on output efficiency at the initial condition? (4 points) e. Same with question (d): what if the number of city population becomes 100 thousand? (3 points)
Expert Answer:
Answer rating: 100% (QA)
a To draw the MC and MB curves we need to first calculate the total MB for each group of people based on the given marginal benefit functions For the first 5 people MB 100 5Q For the remaining 10 peop... View the full answer
Related Book For
Applied Statistics for Public and Nonprofit Administration
ISBN: 978-1285737232
9th edition
Authors: Kenneth J. Meier, Jeffrey L. Brudney, John Bohte
Posted Date:
Students also viewed these accounting questions
-
For a cost function C = 100 + 5Q + 2Q2, the average variable cost of producing 10 units of output is: 10. 25. 35. None of the answers are correct.
-
In how many ways can 5 different trees be planted in a circle?
-
Draw a tree diagram that pictures all possible equally likely outcomes if a coin is flipped as specified. a. Two times b. Three times c. Four times
-
Maynard Appliances is holding a Fifty- Fifty Sale. Major appliances may be purchased for nothing down and no interest to pay if the customer pays 50% of the purchase price in six months and the...
-
The federal Age Discrimination in Employment Act (ADEA) makes it unlawful for employers "to fail or refuse to hire or to discharge any individual or otherwise discriminate against any individual with...
-
The Monroe Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labour: Direct materials: 10 kg at $4.50 per kg...
-
Assume that an income statement contains each of the three sections listed below. Which will be the last section presented in the income statement? a. Gross profit b. Income from continuing...
-
The following are several activities that Wallingford, Inc. engaged in during 2012: 1. Wrote off an open receivable as uncollected. 2. Purchased a piece of plant equipment. 3. Reacquired 5,000 shares...
-
Which of these is not an 'Industry Driver'? Corporate investment activity Government policy Technology trends Political risk
-
When using the root operation Fusion, there are very specific rules regarding how the device character (sixth character) is assigned. Use the list of devices listed in the ICD-10-PCS book (listed...
-
For each of the following cases, calculate the future value of the single cash flow deposited today that will be available at the end of th deposit period if the interest is compounded annually at...
-
Give two examples each of the bad and the good effects of vibration.
-
What are the three elementary parts of a vibrating system?
-
What is a data attribute (or field)?
-
Define the number of degrees of freedom of a vibrating system.
-
Evaluate the economic prospects of the South American countries.
-
Class data members are almost always public. a. True b. False It is possible to have multiple private labels in a class definition. a. True b. False The assignment operator may not be used with...
-
A number of years ago the United Food and Commercial Workers Union organized 800 workers of the 1035 employees at one of the Wilson Brothers food operations in Toronto, Ontario. The employees include...
-
Congressman Lester Asperin has charged that 50% of all IRS agents would fail a simple test on tax law. IRS Commissioner John Tight believes no more than 15% would fail. Of the 1,000 agents, 200 are...
-
The Mansfield School District wants to predict student enrollments for next year. It hires Daniel Mazmanian Educational Consultants to do this work. Using data from 1992 through 2014 (1992 = year 1),...
-
A city planning commission is considering revamping the traffic system of the city. Help them by calculating the mean and standard deviation of the following data regarding automobile ownership by...
-
A monopolist might prevent potential rivals from entering the market by controlling important _________.
-
A monopolist produces at an output where the price is _________ than its marginal cost, so the value to society from the last unit produced is _________ than its marginal cost.
-
An argument against monopoly is that a lack of competition tends to retard _________ advance; but, in fact, many near monopolists are important innovators.
Study smarter with the SolutionInn App