User Account

All Pages

What is the socially optimal level of fireworks

Assignment Help Macroeconomics
Reference no: EM131179889

Consider a town that is planning a firework festival during the Fourth of July night. It cost $360 to provide 10 minutes of fireworks. The marginal private benefits (MPB) for the three residents are shown in the table below.

MPB MPB MPB MPB

Person for the for the for the for the first 10 min next 10 min next 10 min next 10 min

500 280 190 100 Person A

150 110 90   70 Person B

100   90 80   50 Person C

  1. What is the total benefit to all residents by providing 20 minutes of firework?

  2. What is the socially optimal level of fireworks?

  3. If the cost of providing firework is divided to the three residents equally, what would be the firework level decided by the majority voting rules?

Reference no: EM131179889

Questions Cloud

Change credit standards and policies to affect the same end : Suppose a firm has excess inventory and does not want to reduce its selling prices to boost sales. How might it change the credit standards and policies to affect the same end? What are the likely positive and negative effects, (risk/return analysis)..
Identify and list three primary core and personal values : Complete a self-assessment to identify and list three primary core and personal values, attitudes, and communication styles, draft a 1-2 page personal statement highlighting personal values, attitudes and communication style and detail how this st..
Discuss the facts and findings of relevant court cases : HA3032 AUDITING AND ASSURANCE SERVICES INDIVIDUAL ASSIGNMENT. Discuss the facts and findings of relevant court cases that Andersens should refer to in determining the likelihood of the partnership being held liable to: clients and creditors
Calculate the amplitude and frequency of the transducer : Explain why an orifice plate meter is suitable for this application.- Estimate the required orifice plate hole diameter if the transmitter has an input range of 0 to 1.25 x 104 Pa.
What is the socially optimal level of fireworks : Consider a town that is planning a firework festival during the Fourth of July night. It cost $360 to provide 10 minutes of fireworks. The marginal private benefits (MPB) for the three residents are shown in the table below.
Why the delivery and support components of the value chain : Recommend one (1) specific adaptive strategy or combination of adaptive strategies that would be most effective in ensuring that the organization achieves its strategic goals. Support your recommendation with examples of the successful application..
Firm issued and sold dollar-denominated bond : A Japanese firm issued and sold a dollar-denominated bond in the United Kingdom. A U.S. firm issued bonds denominated in yen and sold the bonds in Japan. Which one of the following statements is correct?
Demonstrate an understanding of the nature : Demonstrate an understanding of the nature of the corporate entity and be aware of the authoritative influences that underpin accounting and reporting in the Australian and global regulatory environment
Opportunity cost of capital for this type of equipment : One year ago, your company purchased a machine used in manufacturing for $120,000. You have learned that a new machine is available that offers many advantages; you can purchase it for $155,000 today. The market value today of the current machine is ..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Analysis to illustrate the changes in chicken prices

Three factors make analysts more optimistic: Companies are cutting production, weekly egg-set numbers are declining (egg sets are fertile eggs placed in incubators), and prices are responding positively to the decreasing supply. The ..

  Government places a price floor on milk which is below

The government places a price floor on milk which is below the current equilibrium price of milk. The number of children who drink milk and the number of farmers who produce milk increase at the same time.

  Elucidate the impact of an increase in production technolog

In the Keynesian, Classical, as well as Solow model, Elucidate the impact of an increase in production technology

  Equilibrium real gdp for economy

The economy of Tinseltown has a consumption function of C = 15 + 0.7Y , investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2Y. What is equilibrium real GDP for this economy?

  Unemployment is one of the major concerns that people have

unemployment is one of the major concerns that people have in todays economy since losing ones job can be one of the

  Advise the president to pursue in order

Discuss three economic policies you might advise the President to pursue in order for his country to achieve this increased standard of living.

  Elucidate the phenomenon of market foreclosure

Elucidate the phenomenon of market foreclosure. Specifically, explain how a vertical merger may "substantially lessen competition or tend to create a monopoly".

  Analyze four moral development stages in military leadership

Analyze and assess the Greatest Moral Obligation of a military Leader (US Military Leader)? Critically give the significance of Morality of obligation and Leadership?

  The answer should indicate will these values increase

What will happen to Y (GDP), r (real interest rate), P(price level), and I(investment), in the short run ?The answer should indicate will these values increase or decrease in the short run.

  Invest in sf or dollar now

What do you expect the 12-month forward rate by using the interest rate parity? Suppose the actual 12-month forward rate is 0.83. Would you like to invest in SF or Dollar now?

  How does the drought affect the supply of beef

The drought in Oklahoma is causing cattlemen to sell off their cattle herds. How does this affect the supply of beef How does it affect the demand for beef worldwide How does it affect the demand for chicken

  Which two determinates currently have the greatest impact on

In your opinion, which two determinates currently have the greatest impact on aggregate demand and supply? Justify your response with an example.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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