Derive the new demand for the public good

Reference no: EM131072231

In the previous question, suppose a new citizen joins the economy, and her demand for the public good is given by P = 10-(5/12)Q.

(a) Derive the new demand for the public good on the part of the whole economy and compute the new optimal level of supply, given that the MC remains unchanged.

(b) Calculate the total value to the consumers of the amount supplied at this efficient output level. (c) Compute the net value to society of that choice - the total value minus the total cost.

Reference no: EM131072231

Questions Cloud

Prepare a prospectus for a new product : The Group will prepare a 5000 word "prospectus" for a new product or company based on one of their own "ideas", which provides sufficient information to allow a potential investor to make an informed decision on the "value" of the possible investm..

What is the expected return for the market : Huit Industries common stock has an expected return of 11.4 and a beta of 1.2. If the expected risk free return is 3%. What is the expected return for the market (round your answer to the nearest .1%)

Requests from the second manufacturing process : How much improvement is there in the AS/RS system if the time between requests from the second manufacturing process is uniformly distributed between 10 and 30 seconds?

Average waiting time for the sr machine increases : Explain why the average waiting time for the SR machine increases when the larger rack size is used especially considering that there is no waiting for an empty bin.

Derive the new demand for the public good : Derive the new demand for the public good on the part of the whole economy and compute the new optimal level of supply, given that the MC remains unchanged.

Create a cover letter using parameters : Create a cover letter these parameters - All of your information and the employers information should be at the top of the page. Include the date at the top of the page.

Inventory for using the retail method : Curtis Company must estimate its ending inventory and has the following information available from the most recent accounting period: Compute the December 31 inventory for Curtis using the retail method.

Validity of the performance measure estimates : What impact would running the simulation experiment until all subassemblies had been moved to the final assembly process have on the validity of the performance measure estimates?

Supply and demand functions for each type of labour : Suppose that the demand for high-skill workers lies everywhere above the demand for low-skill workers. Illustrate on a diagram the supply and demand functions for each type of labour, and the equilibrium for each type of worker.

User Account

All Pages