Could everyone be made better off if smoking is allowed

Reference no: EM131142209

Consider a crowded room with an equal number of smokers and nonsmokers. Each smoker would be willing to pay $1.00 to have the right to smoke. Each nonsmoker would be willing to pay $0.50 to have the room free from smoke. Assume there is a rule that says no smoking is allowed. Could everyone be made better off if smoking is allowed? How? If property rights to clean air are assigned to the nonsmokers, how might the efficient outcome be obtained? What difference does it make to the outcome whether there is initially a rule that smoking is allowed or that smoking is not allowed? What problems might you envision occurring if no smoking is allowed unless all the nonsmokers agree to allow it?

Reference no: EM131142209

Questions Cloud

How much is the debt ratio : Assume you are given the following ratios: Assets turn over = 1.5x Return on assets = 3% Return on equity = 5% 1. How much is the Profit Margin?2. How much is the Debt Ratio?

Determine the effective green and red times : Determine the effective green and red times that will allow the queue to clear exactly at the end of the cycle

What is the economic production quantity : C&A produces dog food in 20-pound bags. Monthly demand for C&A's dog food is 60,000 pounds. C&A has capacity to produce 144,000 20-pound bags per year.- What is the economic production quantity?

What is the total vehicle delay two full cycles : The approach has a saturation flow rate of 1200 veh/h and an effective green of 20 seconds, and the cycle length is 40 seconds - What is the total vehicle delay two full cycles after the 800- veh/h arrival rate begins?

Could everyone be made better off if smoking is allowed : What problems might you envision occurring if no smoking is allowed unless all the nonsmokers agree to allow it?

What are the major metaphors in lady lazarus : How does the form, language, and punctuation/grammar Ginsberg uses supplement the meaning of "Howl" and "America"? How/why does Ginsberg blend fictional and non-fictional anecdotes in these poems? Do these qualities make this poem a postmodern wor..

What are its sales : Felton Farm Supplies, Inc., has an 8 percent return on total assets of $300,000 and a net profit margin of 5 percent. What are its sales?

What is the total delay per cycle : What minimum displayed green time must be provided to ensure that the queue in each cycle clears, and what is the total delay per cycle and delay per vehicle for this green time? (Assume D/D/1 queuing.)

Determine a firm''s total asset turnover tat if it net profit : Determine a firm's total asset turnover (TAT) if its net profit margin (NPM) is 5 percent, total assets are $8 million, and ROI is 8 percent.

User Account

All Pages