Find the new optimal road width

Assignment Help Business Economics

Reference no: EM13885648

Suppose that the government is deciding how wide to make a public road that services one resident named Bob. Bob’s willingness to pay for each meter of road is described by 20 – 2Q. a. Graph Bob’s willingness to pay (demand) curve. Suppose that the marginal cost for each meter of road is described by MC=2Q. Find the optimal width of the road. b. A second resident named Doug moves into a house on the road in question, and Doug’s willingness to pay is described by 10-Q. Graph Doug’s willingness to pay curve. Then derive the collective demand curve and draw it on a graph. c. Find the new optimal road width.

Reference no: EM13885648

Questions Cloud

Should the franchisor be held liable for the injuries : If the van is involved in an accident that causes injury to a person, should the franchisor be held liable for the injuries? What are the arguments for and against holding the franchisor liable under the circumstances

What total utility will you realize : You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. If your income is $9.00 and the prices of X and Y are $2.00 and $1.00, respectively, what quantities of each will you purchase to maximize utility? Wh..

What is the acid-test ratio for stick''s design? : What is the acid-test ratio for Stick's Design?

What is multivariate analysis of variance : What is multivariate analysis of variance (MANOVA) and Under what conditions is MANOVA used?

Find the new optimal road width : Suppose that the government is deciding how wide to make a public road that services one resident named Bob. Bob’s willingness to pay for each meter of road is described by 20 – 2Q. Find the new optimal road width. Graph Bob’s willingness to pay (dem..

Describe the ethical issue involved in case using scholarly : Prepare a 800-word minimum paper in which you answer the following questions: Describe the ethical issue involved in the case using scholarly, discipline specific references

Regarding the taxpayers charitable deduction for artwork : An individual donates artwork to San Francisco General Hospital. This was the only charitable contribution the taxpayer makes during the year. The artwork was purchased several years ago for $50,000; it is worth $140,000 at the time of the donation. ..

Simple example of two countries and two goods : Let's take a simple example of two countries and two goods. Country 1 produces 10 units of Wine and 5 units of cloth in 1 hour. Country 2 produces 4 units of wine and 1 unit of cloth in 1 hour. Who has absolute advantage and who has comparative advan..

Borrowed money to purchase stocks and taxable corporate bond : Tom borrowed money to purchase stocks and taxable corporate bonds. During 2014 Tom paid $10,000 interest on this loan. Janice’s gross income in 2014 included $40,000 of wages, $5,000 of interest and $2,000 of capital gain taxed at the lower capital g..

User Account

All Pages