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Question - Suppose there are 100 commuters that use a strip of highway to get to work. They all drive alone and prefer to drive in big cars - it gives them more prestige a makes them feel safer. Bigger cars cost more per mile to operate, however, since their gas mileage is worse. Worse yet, bigger cars cause greater permanent damage to roads.
More specifically, if w is the weight of the car, suppose that a driver's benefits from driving are 4w, while the costs are (3/2)* w2. The external costs, coming in the form of damn to the roads, is (1/3)* w3. Assume age that individuals have utility functions of the form: U = x, where x are the net benefits from driving a car of a give size.
What car weight will be chosen by drivers?
What is the optimal car weight? If this differs from (a) why?
Design atoll system that incentivizes drivers to choose the optimal car weight.
how do you explain the fact that in some countries there is widespread political support for government policies that expropriate resources from some groups for the purpose of handing them out to other groups
Determine the steps you would need to take to officially establish your company with the business structure that you feel is most appropriate.
A project to deepen the river by dredging would reduce the damages for both families.The deeper the dredging, the less the damages.The marginal benefits to each family are given in the table. Plot each family's demand curve for the project. Calcul..
During crisis situations, leadership becomes a true driver of organizational profitability. [Jaques ], Argues that, communication is the key element.
Construct a 98% confidence interval estimate for the difference between the mean creativity score for those with a red background and the mean creativity score for those with a blue background.
Interest on your bank balance: Suppose your bank account has a balance today of $100. Consider the following time periods: t = 0, t = 1, t = 2, t = 12, t = 24.
The fuel economy (in miles per gallon) of a certain car is E(x) = -0.01x2 + 0.64x +10.4, where x is the driving speed (in miles per hour, 20 = x = 60). At what speed is fuel economy greatest?
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chens car is worth 5000. but she is sometimes careless and leaves the door open and the keys in the ignition.
Analyze the factors you considered when identifying the market structure for the industry. Identify market structure that best characterizes industry described.
How would each of the following developments affect the U.S. monetary base, money multiplier, andmoney supply? Explain.a. The Federal Open Market Committee decides to purchase $40 billion of mortgage-backed securitiesevery month (like the thir..
Analyze the ethics of one of the cases from the movie The Corporation - Identify the relevantfacts that need to be taken into account in order to analyze the case study
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