Miller and Lux 25. Miller and Lux, large cattle ranchers in the late 1800s in California,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Miller and Lux 25. Miller and Lux, large cattle ranchers in the late 1800s in California, had Riparian rights to the lower Kem River (past Bakersfield). Upstream appropriator James Haggin builds a canal near Bakersfield, diverts water in 1875, dries up the stream during the 1877-79 drought, and kills thousands of Miller and Lux's cattle downstream. Miller and Lux sue. This is a famous true story - for details, see https://en. wikipedia.org/wiki/Lux_v. Haggin (Links to an external site.) Links to an external site Suppose Miller and Lux have a MB of water: P-10-Q/4. The Kern River has 40 AF of water every year. Haggin has a MB of water P-40-2Q. Assume the MC of water extraction is 0. AF Q=_ a. Determine the efficient allocation of water and specifically how much Haggin should receive P=40-2a MB of water P-10-Q/4 Kern River = 40 AF b. Since Haggin is upstream, he is physically able to take as much as he'd like, which is what caused the problem in the first place. In the absence of any negotiation, determine how much water he will take (recall his MC=0) and the resulting deadweight loss. Report the deadweight loss here: C. The Supreme Court ruled in favor of Miller & Lux, the downstream cattle ranchers, stating that their riparian rights (granted to any adjacent-to-a-stream property owner) were superior to Haggin's appropriative rights. Thus, Haggin could only take water that Miller and Lux didn't need. If Haggin weren't upstream, what quantity of water would Miller & Lux take each year? (se. what would they do if no one else used the stream)? AF d. Explain why Haggin's presence changes the situation, even though Miller and Lux won in court and have the right to take as much as they wish. Why is your answer above (what Miller & Lux would take in isolation) unlikely to prevail? Explain 19 Miller and Lux 25. Miller and Lux, large cattle ranchers in the late 1800s in California, had Riparian rights to the lower Kem River (past Bakersfield). Upstream appropriator James Haggin builds a canal near Bakersfield, diverts water in 1875, dries up the stream during the 1877-79 drought, and kills thousands of Miller and Lux's cattle downstream. Miller and Lux sue. This is a famous true story - for details, see https://en. wikipedia.org/wiki/Lux_v. Haggin (Links to an external site.) Links to an external site Suppose Miller and Lux have a MB of water: P-10-Q/4. The Kern River has 40 AF of water every year. Haggin has a MB of water P-40-2Q. Assume the MC of water extraction is 0. AF Q=_ a. Determine the efficient allocation of water and specifically how much Haggin should receive P=40-2a MB of water P-10-Q/4 Kern River = 40 AF b. Since Haggin is upstream, he is physically able to take as much as he'd like, which is what caused the problem in the first place. In the absence of any negotiation, determine how much water he will take (recall his MC=0) and the resulting deadweight loss. Report the deadweight loss here: C. The Supreme Court ruled in favor of Miller & Lux, the downstream cattle ranchers, stating that their riparian rights (granted to any adjacent-to-a-stream property owner) were superior to Haggin's appropriative rights. Thus, Haggin could only take water that Miller and Lux didn't need. If Haggin weren't upstream, what quantity of water would Miller & Lux take each year? (se. what would they do if no one else used the stream)? AF d. Explain why Haggin's presence changes the situation, even though Miller and Lux won in court and have the right to take as much as they wish. Why is your answer above (what Miller & Lux would take in isolation) unlikely to prevail? Explain 19
Expert Answer:
Answer rating: 100% (QA)
Miller and Lux Case Analysis a Efficient Allocation of Water Step 1 Find marginal benefits and marginal costs Miller and LuxMB 10 Q4 MB decreases as t... View the full answer
Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
Posted Date:
Students also viewed these economics questions
-
In the late 1800s "wildcat banks," which were easy to charter and largely unregulated, sprang up across the American West. Some new banks chose to operate out of simple and inexpensive wooden...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Write a paper about operations of Morning Star homes, a construction company. How you are progressing in your Project Management Plan. When is it appropriate to "crash" a project and what are the...
-
On September 30, 2013 (the end of its fiscal year), Lufkin Corporation reported accounts receivable of $331,750 and an allowance for doubtful accounts of $16,700. During fiscal 2014, the following...
-
Modern wind turbines generate electricity from wind power. The large, massive blades have a large moment of inertia and carry a great amount of angular momentum when rotating. A wind turbine has a...
-
How you may use computers for litigation support?
-
CVP, Not for profit Monroe Classical Music Society is a not-for-profit organization that brings guest artists to the communitys greater metropolitan area. The Music Society just bought a small...
-
! Required information [The following information applies to the questions displayed below.] Fitness Fanatics is a regional chain of health clubs that evaluates its club managers based on return on...
-
write a closed-research legal memo using the case cases given, addressing whether Mr. Adler can assert an adverse possession claim to Scrub Lot 40. Please write up your memo using the issue , brief...
-
Locate three (3) empirical, research-based articles. Each article should be within the realm of questions below focus from the text readings. Use the information from the completed Comparison Matrix...
-
Africa Traders is a registered VAT vendor and uses the periodic inventory system. Africa Traders buys and sells furniture and equipment for cash or on credit. On 1 March 2021, Africa Traders sold...
-
Organize each of the following equations to express P as a function of Q. Q as a function of P P as a function of Q Q=25-P Q=12-3P 6Q = 14-2P kkk
-
In Virginia Woolf's "A Room of One's Own," how does Woolf articulate the obstacles faced by women in literature, and how does this work challenge traditional gender roles and advocate for female...
-
Travis owned a home with a first mortgage dated Oct. 1, 2000. On May 1, 2014, Travis took out a home equity loan (second mortgage). He then hired Builder Company to build a swimming pool at the home....
-
Invent a manufacturing company which is growing fast and needs to build a new warehouse to keep up with demand. Create a Work Breakdown Structure and Network Diagram similar to St. John's Hospital in...
-
Within aorta, the largest artery in the body, carries oxygenic blood away from the heart as it begins the systemic blood flow circuit throughout the body. Owing to the fact that the aorta connects...
-
31. What is the income that can be received over 15 years from $500,000 earning 6% annually? 32. What is the semiannual payment required to retire $50,000 in debt over 5 years at 8% compounded...
-
Consider the demand for broadband Internet service, given as follows: QD = 224 4P, where Q is the number of subscribers in a given area (in hundreds) and P is the price in dollars per month. This...
-
Suppose that a monopolistic seller of flux capacitors faces the inverse demand curve P = 40 - 0.5Q, and that the monopolist can produce flux capacitors at a constant marginal cost of $5. a. How many...
-
To assist in ensuring adequate and affordable health care for all, the federal government has mandated that health insurers provide health insurance to all, regardless of their physical condition....
-
Is it possible that the transfers into a PCU may not equal the transfers out of the same PCU on the same day?
-
What is an intrahospital transfer?
-
When must transfers in and transfers out be equal?
Study smarter with the SolutionInn App