Suppose chen has demand q 40 ndash 2p for streetlights and, Ask an Expert

Economics

Suppose Chen has demand Q = 40 – 2P for streetlights and Abby has the demand Q = 10 – (1/2)P for streetlights. The cost of building each streetlight is $19. How many streetlights are socially optimal? Compare this socially optimal quantity with the quantity that would be privately purchased.

A. How many streetlights would be privately purchased?

B. Now suppose that streetlights are a public good. Write an equation for the market demand curve of streetlight consumption.

C. How many streetlights are socially optimal?

D. Compare this socially optimal quantity with the quantity that would be privately purchased

E. If the socially optimal quantity is not equal to the quantity that would be privately purchased, how could government intervene?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91423802

Have any Question?Write your Review or question?

Related Questions in Business Economics

When we look at the ease to enter the different market

When we look at the ease to enter the different market structure, there is no doubt that 'monopoly' is the hardest. Why? -- There is only ONE firm that has established 'economies of scale' with the production of their go ...

A cell phone company offers 15 different voice packages and

A cell phone company offers 15 different voice packages and 15 different data packages. Of those, 6 packages include both voice and data. How many ways are there to choose either voice or data, but not both?

Draw supply and demand curve to illustrate the following

Draw supply and demand curve to illustrate the following sequences of events. Show changes in one graph. Assume upward sloping for supply curves and downward sloping for demand curves 1. In year 1, the rental apartment m ...

What is the central limit theorem why does it make the use

What is the Central Limit Theorem? Why does it make the use of the common inferential tools possible even if the raw data is not distributed normally?

Amongnbsp22- tonbsp27-year-oldsnbsp32 say they

Among 22?- to 27?-year-olds, 32?% say they have called a talk show while under the influence of alcohol. Suppose seven 22 to 27?-year-olds are selected at random. ?(a) What is the probability that at least one has not ca ...

In 2011 new jersey governor chris christie announced that

In 2011, New Jersey Governor Chris Christie announced that he would pull the state out of the Regional Greenhouse Gas Initiative (RGGI), which is a coalition of 10 states that agreed to reduce their emissions of carbon d ...

Lisa and david have been married for two years they have

Lisa and David have been married for two years. They have just decided that summer of 2020 should be spent in Switzerland. They figured out that in order to meet the cost of the entire vacation they would only have to de ...

What is a survey and pros and cons of using this method to

What is a Survey and pros and cons of using this method to collect data are? Have you done a survey? How successful were your results?

Pure gasoline has an energy density of 115600 btu per

Pure gasoline has an energy density of 115,600 BTU per gallon, while ethanol has an energy density of 75,670 BTU per gallon. Gasoline cost $3.70 per gallon. What would the price of E85 (85% ethanol, 15% gasoline) have to ...

What are three ways that even every forecast model should

What are three ways that even every forecast model should be evaluated to obtain the best forecast result.

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 Business Economics Expert