Suppose the residents of toadhop live on the quabache river, Ask an Expert

Economics

Suppose the residents of Toadhop live on the Quabache River which is a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than 1000 (type B) people.

One type A citizens demand is QD = 100 - P

One type B citizens demand is QD = 50 - P

Where Q measures the quality of flood control and P represents the value that one person places on flood control. The marginal cost for each quality unit of flood control is $100,000.

a. If the citizens of Toadhop do not work together, what is the amount of flood control which will be purchased? Explain.

b. If the citizens of Toadhop gather for a town hall meeting to find the socially optimal level of flood control, and they are successful, they will pick Q equal to what value? Explain.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91366911

Have any Question?Write your Review or question?

Related Questions in Business Economics

A researcher records the repair cost for 8 randomly

A researcher records the repair cost for 8 randomly selected washers. A sample mean of $60.46 and standard deviation of $18.36 are subsequently computed. Determine the 90% confidence interval for the mean repair cost for ...

Describe a study you might conduct in which it would be

Describe a study you might conduct in which it would be appropriate to compute a Pearson r(i.e., a study with one group of participants with two scores per participant). Predict if you perceive that the r-value would be ...

How can governance failures such as that of enron which

How can governance failures such as that of Enron which resulted in major global turmoil be avoided

In a certain city is 18 of the people live below the

In a certain city is 18% of the people live below the poverty line. If 11 people are randomly selected, what is the probability that exactly 2 of them live below the poverty line? Leave your answer in decimal form.

A brewery pulls 905 bottles of beer to sample them for

A brewery pulls 905 bottles of beer to sample them for quality control. In the past there has been a 0.12 probability that a bottle of beer is defective. Assuming this trend continues, what is the probability that fewer ...

A box containsnbsp22nbspred marblesnbsp52nbspwhite marbles

A box contains 22 red marbles, 52 white marbles, and 10 blue marbles. If a marble is randomly selected from the box, what is the probability that it is red or blue? Express your answer as a simplified fraction or a decim ...

Annual demand and supply for the mylan company is given

Annual demand and supply for the Mylan company is given by: Q D = 5,000 + 0.5 I + 0.2 A - 100P, and Q S = -5000 + 100P where Q is the quantity per year, P is price, I is income per household, and A is advertising expen ...

How does a high-tech industry differ from most other

How does a high-tech industry differ from most other industries? Provide two examples.

Data collected in the imaginary economy of petubia reveals

Data collected in the imaginary economy of petubia reveals that when the price of hizzle increased by 25%, the quantity of hizzle decreased by 10%, and the quantity of vort demanded increased by 30%. What is the cross-pr ...

Recent tariff actions by president trump include raising

Recent tariff actions by President Trump include raising tariffs and quotas on imports of both manufactured goods like televisions and automobiles and intermediate goods like steel and aluminum sheets. How will the econo ...

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