The beltway is the portion of Interstate 495 that forms a circumferential highway around Washington D.C....

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The beltway is the portion of Interstate 495 that forms a circumferential highway around Washington D.C. The portion of 1-495 in Maryland currently has no tolls or limits on the number of drivers that use it, leading to traffic congestion during peak usage times. Consider the route between two exits, A and B. The time it takes a driver to get from A to B depends on the number of drivers on the road. Specifically, suppose the average time it takes (per driver) is given by the following: AT= 4+0.002N where N is the number of drivers on the road. So if there are 0 other drivers on the road, a driver would take 4 minutes to travel from A to B. If there are 1000 drivers on the road, it would take 6 minutes, etc. Suppose the next best alternative route for drivers is to take side roads, which take a time of 20 minutes. We will assume the side roads are dispersed so that the time it takes on these side roads is always 20 minutes, regardless of the number of drivers. Suppose the homeowners can soundproof their homes. The total cost of soundproofing all of the homes is X. Soundproofing isn't perfect though, but will reduce the cost of noise to the homeowners to the following: Number of Planes Homeowners' cost from noise 0 1 2 3 ليا 4 5 0 600 2. 2,000 4,000 6,600 11,000 1. Assume soundproofing the homes costs X=2500. Is it efficient to install soundproofing and what is the efficient number of planes? [Select] ['yes, install soundproofing", "no, it is not efficient"] [Select] ["0", "1", "2", "3", "4","5"] Assume soundproofing the homes costs X=2500. Suppose the airline has the property right to fly planes. Without bargaining, the airport will operate how many planes? Without bargaining, will the homeowners install soundproofing? [Select] ["0", "1", "2", "3", "4","5"] [Select] ["yes", "no"] After bargaining with each other, how many planes will the airport operate and will the homeowners install soundproofing? [Select] ["0", "1", "2", "3", "4", "5"], [Select] ["yes", "no"] What is the WTP by homeowners for this bargain? [Select] [3200", "2500", "4400", "5000", "9000", "no bargaining occurs"] What is the WTA of the airport for this bargain? [Select] ["3500", "7000", "10500", "14000", "17500", "no bargaining occurs"] 3. What is the most soundproofing can cost and still be efficient to install. In other words, find the maximum value X can take and still be optimal to use soundproofing. The beltway is the portion of Interstate 495 that forms a circumferential highway around Washington D.C. The portion of 1-495 in Maryland currently has no tolls or limits on the number of drivers that use it, leading to traffic congestion during peak usage times. Consider the route between two exits, A and B. The time it takes a driver to get from A to B depends on the number of drivers on the road. Specifically, suppose the average time it takes (per driver) is given by the following: AT= 4+0.002N where N is the number of drivers on the road. So if there are 0 other drivers on the road, a driver would take 4 minutes to travel from A to B. If there are 1000 drivers on the road, it would take 6 minutes, etc. Suppose the next best alternative route for drivers is to take side roads, which take a time of 20 minutes. We will assume the side roads are dispersed so that the time it takes on these side roads is always 20 minutes, regardless of the number of drivers. Suppose the homeowners can soundproof their homes. The total cost of soundproofing all of the homes is X. Soundproofing isn't perfect though, but will reduce the cost of noise to the homeowners to the following: Number of Planes Homeowners' cost from noise 0 1 2 3 ليا 4 5 0 600 2. 2,000 4,000 6,600 11,000 1. Assume soundproofing the homes costs X=2500. Is it efficient to install soundproofing and what is the efficient number of planes? [Select] ['yes, install soundproofing", "no, it is not efficient"] [Select] ["0", "1", "2", "3", "4","5"] Assume soundproofing the homes costs X=2500. Suppose the airline has the property right to fly planes. Without bargaining, the airport will operate how many planes? Without bargaining, will the homeowners install soundproofing? [Select] ["0", "1", "2", "3", "4","5"] [Select] ["yes", "no"] After bargaining with each other, how many planes will the airport operate and will the homeowners install soundproofing? [Select] ["0", "1", "2", "3", "4", "5"], [Select] ["yes", "no"] What is the WTP by homeowners for this bargain? [Select] [3200", "2500", "4400", "5000", "9000", "no bargaining occurs"] What is the WTA of the airport for this bargain? [Select] ["3500", "7000", "10500", "14000", "17500", "no bargaining occurs"] 3. What is the most soundproofing can cost and still be efficient to install. In other words, find the maximum value X can take and still be optimal to use soundproofing.

Answer rating: 100% (QA)

1 Yes it is efficient to install soundproofing The efficient number of planes is 2 With 0 planes the ... View the full answer