a) Assuming each household is making its separate purchase decision, find the market demand function for streetlights for all 25 households b) Assuming each household is making its separate purchase decision, find the equilibrium price and number of streetlights in the community
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- The concert promoters of a heavy metal band, WeR2Loud, know that there are two types of concert - goers: die - hard fans and casual fans. For a particular WeR2Loud concert, there are 1.000 die - hard fans who will pay $150 for a ticket and 500 casual fans who will pay $50 for a ticket. There are 1,500 seats available at the concert venue. Suppose the cost of putting on the concert is $50,000, which includes the cost of the band, lighting, security, etc. Refer to Scenario 15-6. How much additional profit can the concert promoters earn by charging each customer their willingness to pay relative to charging a flat price of $150 per ticket? Group of answer choices $25,000 $50,000 $ 75,000 $100,000The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU Total Marginal Total Marginal GHz Benefit Benefit Cost Costs 2.0 $1,000 $900 2.5 $1,400 $100 $1,200 $1,500 3.0 $300 3.5 $1,900 4.0 $2,000 $400 The total benefit of a 3.0GHZ computer is:The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU Total Marginal Total |Marginal GHz Benefit Benefit Cost Costs 2.0 $1,000 $900 2.5 $1,400 $100 3.0 $300 $1,200 3.5 $1,900 $1,500 4.0 $2,000 $400 Application of the Cost-Benefit Principle would lead one to purchase a computer.
- A friend of yours is considering two movie streaming services. Provider A charges $120 per year for the service regardless of the number of movies streamed. Provider B does not have a fixed service fee but instead charges $1 per movie. Your friend's annual demand for movies is given by the equation QD150-50P, where P is the price per movie. With Provider A, the cost of an extra movie is movie is Given your friend's demand for movies and the cost of an extra movie with each provider, if your friend used Provider A, he would watch movies, and if he used Provider 8, he would watch movies. This means your friend would pay with Provider B. of LM Use the following graph to draw your friend's demand curve for movies. Then use the green triangle to help you answer the questions that follow Note: You will not be graded on any changes you make to the graph. AM AM AME M With Provider B, the cost of an extra Quantity of Moves Your friend would obtain surplus with Provider B. for service with…One way that damage can be reduced is for either the farmer or the rancher to install a fence. The farmer could build and maintain a fence that would keep out the cattle for an annual cost of $80. The cattle rancher could build and maintain a fence between the properties that would keep his cattle out of the farm for an annual cost of $60. If there is no fence, then marauding cattle will reduce the farmer's profit from grain-growing by $70 per year. Assume that the costs of bargaining between the farmer and the rancher are zero. This also implies costless litigation. If we are operating under Farmer's rights: Would the farmer build a fence? Would the rancher build a fence? What if we are operating under Rancher's rights: Would the farmer build a fence? Would the rancher build a fence? Reminder of definitions... Farmers' rights: if a farmer suffers damage from cattle wondering on to his property, he is entitled to be compensated for that damage--in other words, the rancher is…Suppose there are only two fishermen, Maria and Ruby, who fish along a certain coast. They would each benefit if lighthouses were built along the coast where they fish. The marginal cost of building each additional lighthouse is $100. Maria’s demand curve for lighthouses is given by P=170-2Q, and Ruby’s by P=150-Q, where Q is the number of lighthouses. Explain why we might not expect to find the efficient number of lighthouses along this coast. Draw the demand curve for Maria and Ruby individually and the market demand for lighthouses. What is the efficient number of lighthouses?
- Suppose there are 100 farmers each with 10 acres that overlie a common groundwater aquifer. They all have identical farmland that is more productive if wells are used to pump the groundwater for irrigation. They all face a marginal cost of $10 per well. The average productivity (in $ of crop output) of the wells of the common aquifer is given by AP = 100 – W where W is the number of wells drilled into the aquifer. 1a. Assume farmers act on their own how many wells will be drilled and how much rent will the aquifer generate. A. 45; 2025 B. 90; 2025 C. 60; 1000 D. 90; 0 E. 45; 0 F. None of the aboveSuppose that a mechanic owns a building and is renting part of the building's space to a library. Further suppose that because the mechanic is the owner, he has the right to make noise during the day while he fixes cars. While the library cannot insist on a quiet environment, it could move to a quieter building. However, rent in the next best building is $400/month more than rent in the noisy building. The mechanic can adopt a new technology that eliminates the noise for $325/month. Given this situation, can the library find a private solution with the mechanic that will make both better off Yes, but then ▼ Part 2 (2 points) O See Hint What is the minimum and maximum payment the library would make to the mechanic to get it to installthe noise-reducing equipment? NOTE: Round your answers to the nearest dollar. Minimum: Maximum: $ 05/15> VIEW SOLUTION SUBMIT ANSWER 4 OF 15 QUESTIONS COMPLETED 28 MacBook Pro FI F9 FIO F8 F6 F7Suppose that there are two fancy hotels on the online booking platform, say W hotel and Ritz Carlton hotel. Each hotel has the capacity of 20 rooms on the New Year Eve. There are 20 families who are planning to stay at Bay Areas. Suppose that you are the manager and you set the price to maximize the hotel profit. The marginal cost of each hotel room = 500 RMB The largest valuation on the hotel room = 2000 RMB valuation decrease by 100RMS. In total, there are 20 families. Discuss with your peers how many rooms you will offer in the market.
- Exton and Shill are 2 firms that can control emissions at the following marginal costs: MC1 = 400q1, MC2 = 200q2, where q1 and q2 are the amount of emissions reduced by Exton and Shill, respectively. Assume that with no control at all, each firm would be emitting 25 units of emissions. Estimate the cost-effective allocation of emissions control needed if a total reduction of 30 units of emissions is necessary.Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction, the marginal increase in revenue (MR) is MR = 1,000 - 10P How much pollution reduction should Appalachian Coal Mining undertake? Please provide the correct answer. Thank you!The following table shows how the marginal benefit enjoyed by John, Mary, Loren, and all other consumers of outdoor rock concerts varies with the number made available by a city government per summer. a) What would be the efficient number of concerts to produce if the marginal cost of production were $425 instead of $1,000? b) Suppose the marginal cost of producing rock concerts is only $250 per concert no matter how many are produced. Use the data to calculate the efficient number of concerts. c) If a Lindahl scheme is used to finance the concerts, what prices of admission should be charged to John, Loren, and Mary?