A developer owns a piece of beachfront land

Assignment Help Microeconomics
Reference no: EM13490122

A developer owns a piece of beachfront land that she intends to develop  for residential use. The private returns to the developer are as follows:

Return if developed: $50,000
Return if undeveloped: $10,000
Suppose that three nearby residents would sustain damages from beach erosion if the land is developed. Their damages would be as follows:
Resident 1: $20,000
Resident 2: $15,000
Resident 3: $10,000

a.) Is it efficient for the land to be developed?
b.) Suppose that the developer has property rule protection of her right to develop. If bargaining costs between the developer and the
residents are zero, describe the likely outcome.

c.) How does your answer to part (b) change if it costs the three residents a total of $10,000 to organize and act collectively?

d.) How can the government use its regulatory authority to overcome the problem of high bargaining costs?

e.) What amount of compensation should the developer receive if she is prohibited from developing the land and if the development ban is
construed to be a taking?

Reference no: EM13490122

Questions Cloud

Compute the magnitude of the radial acceleration : A flywheel with a radius of 0.500m starts from rest and accelerates with a constant angular acceleration of 0.500rad/s2. Compute the magnitude of the radial acceleration of a point on its rim after it has turned through 60.0
Explain the basics steps in payroll cycle : Explain the basics steps in payroll cycle, discuss the internal control weakness within payroll cycle in general and explain the choices or solutions available to overcome weakness within the payroll cycle.
Determine the amplitude of vibration : A 300-g mass at the end of a Hookean spring vibrates up and down in such a way that it is 2.0 cm above the tabletop at its lowest point, determine the amplitude of vibration
Prepare the cash flow statement for the year : Prepare the Cash Flow Statement for the year ended 28 February 2010
A developer owns a piece of beachfront land : A developer owns a piece of beachfront land that she intends to develop  for residential use.
Compute the maximum acceleration of the object : A 4.00 kg object is attached to a spring and placed on a horizontal, smooth surface. A horizontal force of 15.0 N is required to hold the object at rest, Find the maximum acceleration of the object
Find its velocity at the end of this time interval : A particle moves along the x axis. It is initially at the position 0.330 m, moving with velocity 0.250 m/s and acceleration -0.280 m/s2. Find its velocity at the end of this time interval
Compute the frequency and period of the motion : The position of a particle is given by the expression x = (3.00 m) cos(4.00?t + ?/4), where x is in meters and t is in seconds. Determine the frequency and period of the motion
Explain how the analyst can exploit that advantage : 1. Identify the feature of panel data that offers an advantage over cross sectional data and explain how the analyst can exploit that advantage

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd