Efficient regulation-preserved in an efficient allocation

Assignment Help Business Economics

Reference no: EM131245998

1. Efficient regulation. Suppose the state is trying to decide how many miles of a very scenic river it should preserve. There are 1000 people in the community, each of whom has an identical demand function given by

Q = 40−0.4P

where Q is the number of miles preserved and P is the per-mile price he or she is willing to pay for Q miles of preserved river. (Hint: You will need to derive the market (aggregate) demand curve for a public good.)

(a) If the marginal cost of preservation is $25, 000 per mile per year, how many miles would be preserved in an efficient allocation?

Reference no: EM131245998

Questions Cloud

Calculate breakeven output quantities for each alternative : Nature's Green, Inc., a manufacturer of alfalfa tablets sold in health-food stores, currently operates just outside of Meno, California. Nature's Green is considering two alternative proposals for expansion, because it has run out of acreage to grow ..

Identical demand function : Efficient regulation. Suppose the state is trying to decide how many miles of a very scenic river it should preserve. There are 1000 people in the community, each of whom has an identical demand function given by. If the marginal cost of preservation..

How large are the annual net benefits : Efficient regulation. Suppose the state is trying to decide how many miles of a very scenic river it should preserve. There are 1000 people in the community, each of whom has an identical demand function given by. How large are the annual net benefit..

Demand for contracting services : After a hurricane hits, demand for contracting services goes up because of an increase in damaged houses. Similarly, supply may fall as some contractors have their equipment destroyed and costs go up as the mold remediation is necessary in most house..

Efficient regulation-preserved in an efficient allocation : Efficient regulation. Suppose the state is trying to decide how many miles of a very scenic river it should preserve. There are 1000 people in the community, each of whom has an identical demand function given by. If the marginal cost of preservation..

Decision management and decision control be separated : Should decision management and decision control be separated? As part of your discussion, provide a real-world example (or provide a fictitious example) of a firm where the control (correctly) resides with the same individual as well as an example of..

Two people are playing guessing game with prize : Suppose that two people are playing a guessing game with a prize going to the person closest to one-half of the average. Guesses are required to be between 0 and 100 (could be integers or decimals). Show that none of the following are Nash equilibria..

Things people consider when they make economic choices : What are the two most important things people consider when they make economic choices? How does getting something for free impact how individuals may value that item?

Issues related to developing a sound urban economy : To write a research paper designed to educate the Governor on issues related to developing a sound urban economy. It is essential that you focus on the market forces that define the system of cities that would create a regional competitive advantage.

User Account

All Pages