How many streetlights would be privately purchased

Assignment Help Business Economics
Reference no: EM13861775

Suppose Chen has demand Q = 40 – 2P for streetlights and Abby has the demand Q = 10 – (1/2)P for streetlights. The cost of building each streetlight is $19. How many streetlights are socially optimal? Compare this socially optimal quantity with the quantity that would be privately purchased.

A. How many streetlights would be privately purchased?

B. Now suppose that streetlights are a public good. Write an equation for the market demand curve of streetlight consumption.

C. How many streetlights are socially optimal?

D. Compare this socially optimal quantity with the quantity that would be privately purchased

E. If the socially optimal quantity is not equal to the quantity that would be privately purchased, how could government intervene?

Reference no: EM13861775

Questions Cloud

Effort required to maintain a scanning electron microscope : The effort required to maintain a scanning electron microscope is known to increase by a ?xed percentage each year. A hightech equipment maintenance company has offered it services for a fee of $25,000 for the first year (i.e., end of year 1) with in..
What historical precedents exist for green cities : What historical precedents exist for ‘green cities' in non-democratic countries? Discuss one vision or plan applicable to a chosen location, noting the influence of external factors (e.g. bureaucracy, government cycles, etc.).
How many grams of sodium acetate : How many grams of sodium acetate must be added to 100 mL of 0.150M acetic acid in order to produce a solution with a pH of 4.620? Assume that no volume change occurs.Rearranging the H-H Eqn and solving for the ratio of base to acid:
What is the source of the network effect : Since its founding in 331 B.C.E., the city of Alexandria has been a center of trade for the Mediterranean countries, as well as the Middle Eastern countries. Part of this is due to geography, but it is also due to the network effect. What is the sour..
How many streetlights would be privately purchased : Suppose Chen has demand Q = 40 – 2P for streetlights and Abby has the demand Q = 10 – (1/2)P for streetlights. The cost of building each streetlight is $19. How many streetlights are socially optimal? How many streetlights would be privately purchase..
What are the key design issues for a microprocessor : What are the key design issues for a microprocessor instruction set?
Uml class notations : Compare and contrast the UML class diagram relationships that can exist between classes and explain when you would use each type of relationship to model a software project.
According to the production possibilities model : According to the production possibilities model, does a reduction in the unemployment rate cause the economy to grow (yes or no)? Explain why or why not. What about Improvement in technology.
Started running to another gasoline stations within minutes : Discuss how you can use the laws of demand and supply to explain the following scenarios: After world gasoline prices jumped in the late 2000s, global bicycle sales rose to more than 1 million per month. the employees at the gasoline station would ha..

Reviews

Write a Review

Business Economics Questions & Answers

  Calculate romanias population level

If the population of Romania was about 22 million in 2010 and the average population growth rate is 0.2 percent, then calculate Romania’s population level in 1970.

  Use real interest rate to calculate after-tax present worth

If direct material and labor cost is not the major component in the cost structure, it is more appropriate to use activity based costing to allocate the overhead cost. By life cycle viewpoint, salvage value summarizes all the costs and revenues occur..

  What factors should union investigate in order to address

Suppose a union that represents some but not all of the employees in an industry is considering a strong push for increased pay for their members during the upcoming contract negotiations. However, they are concerned about the possibility that the co..

  What is the rate of output that maximizes zzz

Its demand curve can be written as P = 160 - Q and its short run total cost curve is equal to TC = 1000 + Q^2. What is the rate of output that maximizes ZZZ, Inc.'s short run profits?

  How does this change driver behavior

Traditionally, taxi drivers were only paid by the mile. A couple of decades ago, Yellow cab experimented with paying the same per mile rate plus a fixed fee every time a customer got in the cab. How does this change driver behavior?

  Energy used by traditional incandescent bulbs

LED light bulbs use only 20 to 25 percent of the energy used by traditional incandescent bulbs. Even if all consumers replace their old bulbs by the LED bulbs, do we expect that the arrival of LED light bulbs will decrease energy consumption for ligh..

  What is the atc at that output

Illustrate what output does the low point of ATC occur and illustrate what is the ATC at that output. Explain how your calculations.

  Positive impact on an organization or country

Give an example of a situation in which outsourcing had a positive impact on an organization or country or one in which outsourcing had a negative impact on the organization or country.

  Examine the position of protectionists

Explain how GDP is measured in your country. Provide real life examples - examine the position of protectionists. Explain whether you support their argument

  Illustrate kerosene to be upward sloping as price rise

In a recent article, a researcher reported that he had found the demand curve for kerosene to be upward sloping.-as the price of kerosene rose the quantity demanded of kerosene increased. Illustrate what questions might you have for this researche..

  Cost and revenue estimates to determine

How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.

  What is represented in the price of a good or service

What is represented in the price of a good or service?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd