Top Posters
Since Sunday
59
a
50
14
10
G
9
I
8
m
8
7
m
7
K
7
6
b
6
New Topic  
dwilliams11 dwilliams11
wrote...
Posts: 308
A week ago

Question 1.

The efficient output level of a public good occurs where the



marginal cost of producing the last unit is equal to the marginal benefit realized by consumers.



total cost of production is affordable.



marginal cost of production is minimized.



greatest number of free riders occurs.



Question 2.

Figure 5-16



Amit and Bree are the only two homeowners on an isolated private road. Both agree that installing street lights along the road would be beneficial and want to do so. Figure 5-16 shows their willingness to pay for different quantities of street lights, the market demand for street lights, and the marginal cost of installing the street lights.



Refer to Figure 5-16. How much is Amit willing to pay per street light to have 4 street lights installed?



$3,600



$2,700



$1,800



$900

Textbook 

InMicro


Edition: 1st
Authors:
Read 144 times
6 Replies
Replies
Answer verified by a subject expert
DWFG2796DWFG2796
wrote...
Posts: 298
A week ago
Sign in or Sign up in seconds to unlock everything for free.

Answer 1

marginal cost of producing the last unit is equal to the marginal benefit realized by consumers.



Answer 2

$900

1

Related Topics

wrote...
A week ago

Figure 5-16



Amit and Bree are the only two homeowners on an isolated private road. Both agree that installing street lights along the road would be beneficial and want to do so. Figure 5-16 shows their willingness to pay for different quantities of street lights, the market demand for street lights, and the marginal cost of installing the street lights.



Refer to Figure 5-16. What is the optimal quantity of street lights to install?



3



4



6



9

wrote...
A week ago

6

wrote...
A week ago
You make an excellent tutor!
wrote...
A week ago

Figure 5-16



Amit and Bree are the only two homeowners on an isolated private road. Both agree that installing street lights along the road would be beneficial and want to do so. Figure 5-16 shows their willingness to pay for different quantities of street lights, the market demand for street lights, and the marginal cost of installing the street lights.



Refer to Figure 5-16. Suppose Amit and Bree know each other's preferences so that it is not possible for one to deceive the other. Which of the following statements best describes the circumstances under which the optimal quantity of street lights could be achieved?



The optimal quantity will be installed only if the two parties agree to pay according to their willingness to pay as indicated by their respective demand curves.



Because there are only two consumers, it is likely that private bargaining will result in the optimal quantity being installed.



The optimal quantity will be installed only if Bree pays for the entire installation cost.



The optimal quantity will be installed only if the two parties split the cost of installation equally.

wrote...
A week ago

Because there are only two consumers, it is likely that private bargaining will result in the optimal quantity being installed.

New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  137 People Browsing
 115 Signed Up Today
Related Images
 3488
 882
 92