Reference no: EM13213555
A local drama company proposes a new neighborhood theater in San Francisco. Before approving the building permit, the city planner completes a study of the theater's impact on the surrounding community.
a. One finding of the study is that theaters attract traffic, which adversely affects the community. The city planner estimates that the cost to the community from the extra traffic is $5 per ticket. What kind of an externality is this? Why?
b. Graph the market for theater tickets, labeling the demand curve, the social-value curve, the supply curve, the social-cost curve, the market equilibrium level of output, and the efficient level of output. Also show the per-unit amount of the externality.
c. Upon further review, the city planner uncovers a second externality. Rehearsals for the plays tend to run until late at night, with actors, stagehands, and other theater members coming and going at various hours. The planner has found that the increased foot traffic improves the safety of the surrounding streets, an estimated benefit to the community of $2 per ticket. What kind of externality is this? Why?
d. On a new graph, illustrate the market for theater tickets in the case of these two externalities. Again, label the demand curve, the social-value curve, the supply curve, the social-cost curve, the market equilibrium level of output, the efficient level of output, and the per-unit amount of both externalities.
e. Describe a government policy that would result in an efficient outcome.
|
Danny''s skill at hitting a baseball gradually improves
: danny's skill at hitting a baseball gradually improves as his attempts produce more frequent and longer-distantce hits. this is an example of
|
|
Client’s cash receipts cutoff than the cutoff for sales
: Why are the auditors usually less concerned about the client’s cash receipts cutoff than the cutoff for sales? Explain the procedure involved in testing for the cutoff for cash receipts.
|
|
Evaluate the effectiveness of no child left behind
: "K-12 and NCLB" Please respond to the following: Analyze the proposals for reform in the current K-12 system and determine which single proposal would be the most likely to succeed. Explain your rationale.
|
|
What would be the new equilibrium price
: Suppose a new manufacturing technology results in an expansion in the supply of electric batteries backup (EBB) in FL of 15%. If the elasticity of demand of EBB sold in FL is -0.4, What would be the new equilibrium price
|
|
Describe a govt policy that would result in an efficient out
: One finding of the study is that theaters attract traffic, which adversely affects the community. The city planner estimates that the cost to the community from the extra traffic is $5 per ticket. What kind of an externality is this
|
|
State elements in the atmospheres of the sun and other stars
: The absorption spectra of ions have been used to identify the presence of the elements in the atmospheres of the sun and other stars. What is the wavelength of light (in nm) that is absorbed by He+ ions
|
|
Discuss a specific ethical dilemma
: Discuss a specific ethical dilemma, in relation to the ethical standards of human service professionals, in which you would experience little difficulty due to a concordance between ethical practice and your personal belief system.
|
|
Determine the de broglie wavelength
: A baseball weighs 220 g. Top speed for a professional pitcher is about 100 mph when he throws a fast ball. Find the de Broglie wavelength (in nm) associated
|
|
How much labor and capital will the firm employ
: A contractor for the U.S. Defense Department produces airplanes from capital (K) and labor (L) by the production function: A = K times L 2 The marginal product of labor (MPL) = 2KL. The marginal product of capital (MPK) = L 2 .
|