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QUESTION 9 George runs a very large confectionary factory where he makes all kinds of products including chocolate, toffee, and fudge, for the export market. Hector runs a doctor's practice next to this facility. Currently, George's factory machinery produces a substantial amount of noise, which is making it difficult for Hector to properly focus when he is treating a patient. This situation is causing Hector great distress, and, spurred on by his varying attentiveness and the annoyance of the noise itself, patients are also starting to seek medical care elsewhere. Hector therefore wishes to come to an agreement with George to stop him from using his machinery during times when he should be the busiest with patients at his practice. Their respective benefits are shown below: Gains to George ($) Gains to Hector ($) Total (S) No Noise Controls 800 250 1050 Noise Controls 500 566 George insists that Hector will need to pay him exactly half the extra benefits that Hector gains from the introduction of noise controls. Only then will George consider introducing any noise controls. How much would Hector have to pay to get George to consider introducing noise controls? Answer to the nearest whole number in dollars (with no decimal places. $ sign, spaces or commas).

QUESTION 9 George runs a very large confectionary factory where he makes all kinds of products including chocolate, toffee, and fudge, for the export market. Hector runs a doctor's practice next to this facility. Currently, George's factory machinery produces a substantial amount of noise, which is making it difficult for Hector to properly focus when he is treating a patient. This situation is causing Hector great distress, and, spurred on by his varying attentiveness and the annoyance of the noise itself, patients are also starting to seek medical care elsewhere. Hector therefore wishes to come to an agreement with George to stop him from using his machinery during times when he should be the busiest with patients at his practice. Their respective benefits are shown below: Gains to George ($) Gains to Hector ($) Total (S) No Noise Controls 800 250 1050 Noise Controls 500 566 George insists that Hector will need to pay him exactly half the extra benefits that Hector gains from the introduction of noise controls. Only then will George consider introducing any noise controls. How much would Hector have to pay to get George to consider introducing noise controls? Answer to the nearest whole number in dollars (with no decimal places. $ sign, spaces or commas).

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter16: Information, Risk, And Insurance
Section: Chapter Questions
Problem 18RQ: What are some of the metrics economists use to measure health outcomes?
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QUESTION 9 George runs a very large confectionary factory where he makes all kinds of products including chocolate, toffee, and fudge, for the export market. Hector runs a doctor's practice next to this facility. Currently, George's factory machinery produces a substantial amount of noise, which is making it difficult for Hector to properly focus when he is treating a patient. This situation is causing Hector great distress, and, spurred on by his varying attentiveness and the annoyance of the noise itself. patients are also starting to seek medical care elsewhere. Hector therefore wishes to come to an agreement with George to stop him from using hist machinery during times when he should be the busiest with patients at his practice. Their respective benefits are shown below: Gains to George ($) Gains to Hector ($) Total ($) No Noise Controls 800 250 1050 Noise Controls 500 566 George insists that Hector will need to pay him exactly half the extra benefits that Hector gains from the introduction of noise controls. Only then will George consider introducing any noise controls. How much would Hector have to pay to get George to consider introducing noise controls? Answer to the nearest whole number in dollars (with no decimal places. $ sign, spaces or commas).
Transcribed Image Text:QUESTION 9 George runs a very large confectionary factory where he makes all kinds of products including chocolate, toffee, and fudge, for the export market. Hector runs a doctor's practice next to this facility. Currently, George's factory machinery produces a substantial amount of noise, which is making it difficult for Hector to properly focus when he is treating a patient. This situation is causing Hector great distress, and, spurred on by his varying attentiveness and the annoyance of the noise itself. patients are also starting to seek medical care elsewhere. Hector therefore wishes to come to an agreement with George to stop him from using hist machinery during times when he should be the busiest with patients at his practice. Their respective benefits are shown below: Gains to George ($) Gains to Hector ($) Total ($) No Noise Controls 800 250 1050 Noise Controls 500 566 George insists that Hector will need to pay him exactly half the extra benefits that Hector gains from the introduction of noise controls. Only then will George consider introducing any noise controls. How much would Hector have to pay to get George to consider introducing noise controls? Answer to the nearest whole number in dollars (with no decimal places. $ sign, spaces or commas).
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