What is the socially optimum level of practice for the band

Assignment Help Econometrics
Reference no: EM13214289

Gina was in a garage band when she was in high school, and the only time they could find to practice was on Saturday morning (much to the dismay of her neighbors.) Suppose the band received $49 in internal benefit (i.e., happiness) from practicing for the first hour, and this amount decreases by $10 per hour, each hour thereafter (i.e., $39, $29, etc.). Suppose also that the neighbors have a constant total cost (in terms of the sum of their collective irritation) of $20 worth of distress for each hour of practice.

A) Will Coase bargaining be useful in such a situation? Explain.

B) Left to their our own devices (i.e., without any parental or society intervention,) how long did Gina's garage band practice every Saturday morning? Provide your rationale.

C) What is the socially optimum level of practice for the band?

Reference no: EM13214289

Questions Cloud

Explain what is the remaining ag+ ion concentration : what is the remaining Ag+ ion concentration and is precipitation complete? The solubility product constant of AgBr is 5.0 × 10-13.
Explain a buffer was prepared by adding ammonium nitrate : A buffer was prepared by adding 2.4 g of ammonium nitrate to 100.0 mL of 0.30 M ammonia (Kb = 1.8 × 10-5). To this solution was then added 10.0 mL of 0.30 M sodium hydroxide
Is the provision of the fireworks display efficient : A five-person city is debating the provision of the annual July 4th Fireworks Display that everyone in the city would be able to enjoy. The cost of providing the display is fixed at $250. The willingness to pay for the festival is given in the fol..
Do consumers bear the entire burden of the tax : Suppose that the market (in the graph above) is initially in equilibrium. Assume that consumer preferences shift and people want more of this product, and, at the same time, producers get an improvement in technology which lowers their production ..
What is the socially optimum level of practice for the band : Gina was in a garage band when she was in high school, and the only time they could find to practice was on Saturday morning (much to the dismay of her neighbors.) Suppose the band received $49 in internal benefit (i.e., happiness) from practicing..
What is certified gemstones from tiffanys graduation gift : Which of the following products and services are likely to encounter adverse selection problems: golf shirts at traveling pro tournaments, certified gemstones from Tiffany's graduation gift travel packages, or mail-order auto parts
State what is the concentration of protein a in the filtrate : What is the concentration of protein A in the filtrate, as well as the concentrations of proteins B and C in the filtrate and retentate?
Determine probability that cool-aire will incur os : Cool-Aire Corporation manufactures a line of room air conditioners. Its break-even sales level is 33,000 units. Sales are approximately normally distributed. Expected sales next year are 40,000 units with a standard deviation of 4,000 units.
Depict the form structural formula that predominates : draw the form/structural formula that predominates after deprotonation with any appropriate formal charges and hydrogen atoms.

Reviews

Write a Review

Econometrics Questions & Answers

  Design a simple econometric research project

Design a simple econometric research project

  Multiplicative decomposition method

Multiplicative decomposition method

  Market for cigarettes

The Australian government administers two programs that affect the market for cigarettes.

  Solve the forecast model

Solve the forecast model

  What are the marginal abatement cost functions

What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).

  Write the t statistic for testing the null hypothesis

Explain why this model violates the assumption of no perfect collinearity.  Write the t statistic for testing the null hypothesis

  What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

  Multiple choice questions related to market concentration

Determine when a competitively produced product generates negative externalities in production, the industry will,

  Calculating number of units produced by firm

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.

  Question about mobile commerce

M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.

  Calculating the average days past due and average flow time

Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:

  Mechanism of an english auction and second price auction

Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.

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