Assume that the demand for consuming a public good is given, Ask an Expert

Finance

Assume that the demand for consuming a public good is given by P=20-q. Thet total cost for providing the good is 70. Assume also that the price for consuming the good is set at 5. Will there be enough revenues to cover the cost of proving the public good? Show in a figure and explain. Why does this price level not generate an efficient situation?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92170514

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Can anyone explain this topic consolidation can hide

Can anyone explain this topic 'Consolidation can hide imminent business collapse'. If you can share your argument with real examples that will be much appreciated.

The difference between the terminal value of the two kinds

The difference between the terminal value of the two kinds of annuity payments can be substantial as the number of years increases or the interest rate rises. Consider an individual retirement account (IRA) in which you ...

A couple thinking about retirement decide to put aside 3700

A couple thinking about retirement decide to put aside $3,700 each year in a savings plan that earns 7% interest. In 10 years they will receive a gift of $17,000 that also can be invested. a. How much money will they hav ...

Question - the cost of raising capital through retained

Question - The cost of raising capital through retained earnings is the cost of raising capital through issuing new common stock. The current risk-free rate of return is 4.2%. The market risk premium is 6.1%. D'Amico Co. ...

You are considering investing in a bank account that pays a

You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $200,000?

How do i figure a cusomers expected return when borrowing

How do I figure a cusomer's expected return when borrowing money? Example, the customer wants an investment that costs $100 and considers borrowing $80 for one year at 4.6% to help pay for the investment. What is the cus ...

1 the equal annual end-of-year payments required to repay a

1. The equal annual end-of-year payments required to repay a loan of $60,000 borrowed at 12% for ten years is: a. $5,332 b. $6,854 c. $10,619 d. 12,472 2. A cash deposi ...

Super growth co is growing quickly dividends are expected

Super Growth Co. is growing quickly. Dividends are expected to grow at a 32 percent rate for the next three years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 15 percent ...

Question financial ratios analysis and comparison

Question: Financial Ratios Analysis and Comparison Paper Prior to completing this assignment, review Chapter 10 and 12 in your course text. You are a mid-level manager in a health care organization and you have been aske ...

Question - netphone inc expects the following ucfbt 1

Question - Netphone Inc. expects the following: UCFBT= $1 million in perpetuity from the beginning of year 3 there is no income prior to that. Ignore loss carryovers for taxes. Tax rate is 50%, amount of debt = 0 Rzero= ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert