+1-415-315-9853

info@mywordsolution.com

## Economics

 Basic Economics Macroeconomics Microeconomics Business Economics Econometrics International Economics Managerial Economics Game Theory Public Economics

1. There are a lot of mosquitoes in island of Liholiho.  Only two people live in this island, Robinson Crusoe and Man Friday.  Their respective demand curves for the mosquito control are given by Pc = 120 - 2Qc and Pf = 260 - 4Qf, where c stands for Crusoe, f stands for Friday, and Q and P are quantity and price of mosquito control. Assume that mosquito control is a public good.

(a) What is optimal level of provision of this good if it can be produced at the constant marginal cost of \$80 per unit?

(b) What would it cost Government of Liholiho to offer the optimal amount of mosquito control?

(c) How should the tax bill be assigned between the two individuals if they are to share it in proportion to total benefits from mosquito control received by each individual?

(d) If mosquito control were left to private market, how much would be provided?  Does your answer depend on what each person assumes the other would do?  describe.

2.  Assume that a public park is visited by people living in five concentric zones around the park.  Each zone has a population of 5000, and the total travel cost for a visit to the park from zone i is given by TCi = 4 (i -1), where i = 1 , ... , 5.  For each zone, the estimated relationship between visitation rate V (defined as annual number of visits/1000) and total travel cost (TC) is given by
V = 100 - 5 TC.

(a) For each zone, obtain an equation relating total number of visits from that zone to different levels of a hypothetical fee charged per visit.

(b) prepare down in the equation form (and also depict in a diagram) aggregate demand curve for the park and use this curve to compute the annual user value of the park.

(c) Assume that the annual maintenance cost of the park is 30,000 and the local government is under considerable pressure to sell the park to urban developers.  What would you advise in this case?  Use the information obtained in 2(b) and lists any additional factors that might need to be investigated before arriving at the correct decision.

3. The inhabitants of Fantasia live for two periods, 0 and 1.  They consume a non renewable resource called Fantasium in each period.  Fantasium has to be extracted from ground and the (constant) marginal cost of extraction is \$4/unit.  The total available supply of Fantasium in ground is 22 units and you must suppose that the complete amount will be consumed over the two periods.  The market demand curve for Fantasium in period 0 is given by P0 = 10 - Q0 + M and in period 1 this demand curve is given by P1 = 10 - Q1 + M, where Pi is price in period i, Qi is quantity demanded in period i (i = 0, 1), and M is Fantasia's national income in each period.  Assume that there are many identical firms extracting Fantasium in every period, each firm has perfect foresight about prices, each firm discounts profits at the rate of 50%, and M = 20.

(a) Use Hotelling's Rule to get an equation which relates the equilibrium price in period 0 (i.e., P0) to the equilibrium price in period 1 (i.e., P1).

(b) Use the market demand curve in each period and your answer to 3(a) to get an equation which relates the equilibrium quantities Q0 and

Q1.  Use this equation and the constraint on total accessible supply of Fantasium to solve for the equilibrium quantities of Q0 and Q1.

(c) Use your answers to 3(b) in the demand curve for each period to get equilibrium values of P0 and P1.
(d)  What would be the equilibrium values of Q0 and Q1 if the rate of discount was 100% instead of 50%?
(e) What would be the equilibrium values of Q0 and Q1 if the rate of discount was 50% but the marginal cost of extraction of Fantasium was \$14/unit instead of \$4/unit?
(f) What would be the equilibrium values of Q0 and Q if the rate of discount was 50%, the marginal cost of extraction of Fantasium was \$4/unit, but M was 40 instead of 20 ?

Microeconomics, Economics

• Category:- Microeconomics
• Reference No.:- M91310

Have any Question?

## Related Questions in Microeconomics

### Assignment1laura just opened a coffee shop in nyc named

Assignment 1. Laura just opened a coffee shop in NYC named Squirrel Coffee. Hoping to cater to the hipsters, she sells a special kind of cold brew infused with nitrogen, which she dubs ‘nitro coffee'. Assume for the purp ...

Assignment You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions. Write a 1,050-word analysis that includes the following: • The impact the theo ...

### Problem setthis problem set is due on monday october 24th

Problem Set This problem set is due on Monday, October 24th in class. Consider the specific factors model (2 goods, 3 factors, where labor is the flexible factor) for a given small country with the following Cobb-Douglas ...

### Assignment emerging economies and Assignment: Emerging Economies and Globalization

Assignment: Emerging Economies and Globalization Background Markets in developed economies are approaching saturation level. Therefore, MNCs are searching for new untapped markets in emerging countries such as India and ...

### Assignmentfor this assignment write a paper describing how

Assignment For this assignment, write a paper describing how an analysis of intrusion signatures could be conducted for your project organization. Include the following in your paper: • A description of signature analysi ...

### Assignmentvisit wwwlovemarkscom and share your thoughts on

Assignment Visit www.lovemarks.com and share your thoughts on Branding and Pricing as it relates.....to "The Future Beyond Brands." Check out the Love/Respect Axis and see just where your favorite brand is sitting. (lmnu ...

### Assignmentioverview provide an overview consisting of a

Assignment I. Overview: Provide an overview consisting of a brief description of the chosen company, your chosen product or service, and annual sales. II. Macroeconomic Variables For this section, you will utilize macroe ...

### Introduction to economic evaluation of health promotion

Introduction to Economic Evaluation of Health Promotion Interventions Assignment Evaluating Cost-effectiveness using Markov cohort models: The HPV case The goal of this assignment is to provide students with applied prac ...

### Desserts by jb case studyjay brown jb to his friends is a

Desserts by J.B Case Study Jay Brown (J.B. to his friends) is a student at the North-west Culinary Institute and specializes in preparing elab-orate desserts. After graduation. J.B. wants to open up a bakery. The bakery. ...

### Microeconomicsdiscussion forumnote the video has closed

Microeconomics DISCUSSION Forum Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu. Note: The video has Closed C ...

• 13,132 Experts

## 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.

### Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

### Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

### Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

### Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

### Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen