None Consider a small town with only three families, the Johnson family,the Marshall family, and the Walker family. The town does notcurrently have any streetlights so it is very dark at night. The threefamilies are considering putting in streetlights on Main Street andare trying to determine how many lights to install. The table belowshows each family's willingness to pay for each streetlight.Number of The Johnson The MarshallThe WalkerStreetlightsFamilyFamilyFamily1$170$240$2102130190200380130170420651205025506010Refer to Table 11-2. Suppose the cost to install each streetlight is$180 and the families have agreed to split the cost of installing thestreetlights equally. To maximize their own surplus, how manystreetlights would the Johnson's like the town to install?O streetlights1 streetlight2 streetlights3 streetlights

Willingness to Pay (WTP) is an economic concept that refers to the maximum amount an individual or…

Answered: Consider a small town with only three…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

See similar textbooks

Similar questions

Explain what asylm seeker id
Consider a small town with only three families, the Greene family, the Brown family, and the Black family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family’s willingness to pay for each streetlight. Number ofStreetlights The Greene Family The Brown Family The Black Family 1 $340 $480 $420 2 260 380 400 3 160 260 340 4 40 130 240 5 0 50 100 6 0 0 20 Refer to Table 11-2. Suppose the cost to install each streetlight is $360 and the families have agreed to split the cost of installing the streetlights equally. If the residents choose to install the number of streetlights that will maximize total surplus from the streetlights, how much total surplus will the Greene family receive? a. -$80 b. $360 c. $320…
53. The Indiana University basketball team trails by twopoints with eight seconds to go and has the ball. Shouldit attempt a two-point shot or a three-point shot?Assume that the Indiana shot will end the game and thatno foul will occur on the shot. Assume that a three-pointshot has a 30% chance of success, and atwo-point shot has a 55% chance of success. Finally,assume that Indiana has a 55% chance of winning inovertime.
Hou are loohing a doctor a tailor, The farmer ond 30% of the at a Closed handymany the handymaa 0tput,while with a farmera and Use farmer's the doctor the tailor Use Snd 20'% of the farmerls output. The handymanthe famer, and the tailor uses 20O% of the handyman's atput, while the doctor uses 40 % the handyman's output, The tailr and the 30%% of the tailor's autput, while of the 20% of the doctor use the handyroan ond O tailor's output. The doctor doctor's output, the famer uses doctor's autpt nd the hardyman nd tailor exch farmer Use 20Yo uses. 30% of the Use 259% of the dortars OHOH. The doctors income/expense to this econimy is $54,000? Create a model or the econcmy- What is the handyman's income? what is the tailor's income? what is the farmerls Income?
Five roommates are planning to spend the weekendin their apartment watching movies, and they aredebating how many movies to watch. The tablebelow shows each roommate’s willingness to pay foreach of the movies:Ava Ridley Spike Kathryn QuentinFirst film $14 $10 $8 $4 $2Second film 12 8 4 2 0Third film 10 6 2 0 0Fourth film 6 2 0 0 0Fifth film 2 0 0 0 0A movie on their streaming service costs $15, which theroommates split equally, so each pays $3 per movie.a. What is the efficient number of movies to watch(that is, the number that maximizes total surplus)?b. For each roommate, what is the preferred numberof movies to watch?
What is an externality?
Imagine a scenic canyon, visited by many local people as well as tourists from beyondthe local area. Consider a scenario in which a mining company has proposed to the localauthority that it be closed to the public and put into the production of coal. Thinking interms of economics as a way of adjudicating the relative value of one use of the canyon overthe other, what would you need to know in order to make a comparison or assessment?What kinds of quantitative data would inform your decision, and where might they comefrom? What kinds of things might you need to know that are hard to measure? Once youhave listed the kinds of information and data that might be available to inform this decision, do you think it would be sufficient to making this decision, why or why not?
4. Four roommates are planning to spend the weekend in their dorm suite watching old olent atsomos movies, and they are debating how many to watch. The table below contains their willingness to pay for each film. 1st film 2nd film 3rd film 4th film 5th film John $7 $6 $5 $4 $3 Paul $5 $4 $3 $2 $1 an rud bas Vedda nowoc 2102 gulden et 150 yebesnbew sho George $3 $2 $1 $0 $0 (nast il qalihe: 0 sx sig Ringo og $2 $1 $0 $0 $0 Taboog dikdug dan one dorld amasi obivond themsvog srl: asobydw 20607 1610A (b 2)99712 vdio (9 it sins 0.6 d. Is there any way to split the cost so that everyone benefits? What problems arise with this plan?
1. Farmers Jack and Joe have learned that their respective farms have been struck by an unusual virus. When Joe goes to the vet, he is told that if nothing is done 200 of his 800 animals will live. The alternative is an experimental drug, if used there is a 25% chance that all animals will live and a 75% chance that none will live. When Jack goes to the vet, he is told that if nothing is done 600 of his 800 animals will die. His vet also offers an experimental drug and explains that if used there is a 75% chance that all the animals will die and a 25% chance that none will die. Using the value function from Prospect Theory predict which action Joe and Jack will take. a) Both Joe and Jack will do nothing b) Both Joe and Jack opt for the experimental drug c) Joe will do nothing but Jack will opt for the experimental drug d) Joe will opt for the experimental drug but Jack will do nothing. Explain (please also explain how your prediction differs from the prediction of standard expected…
View History Bookmarks Profiles Tab Window Help E Inform I The va 8 Com G Home M Docun E Info pup O Dashb E operat O McGra Lectur ructure.com/courses/169731/external_tools/retrieve?display=full_width&url=https%3A%2F%2Funcc.quiz-Iti-iad-prod. 1 point When Target charges $95 for a children's game, they sell 100 units. When they charge $84, they sell 120 units. If they were to give away the game for free, how many units (Q) would be demanded? (Answer is NOT infınity) Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER. Type your answer. Previous informative paper.pdf Ch4-ProjectMg...pptx Ch7&8-Manufa.pptx 25 ttv 20 F9 DOO ES #3
Four roommates are planning to spend the weekendin their dorm room watching old movies, and theyare debating how many to watch. Here is theirwillingness to pay for each film:Dwayne Javier Salman ChrisFirst film $7 $5 $3 $2Second film 6 4 2 1Third film 5 3 1 0Fourth film 4 2 0 0Fifth film 3 1 0 0a. Within the dorm room, is the showing of a moviea public good? Why or why not?b. If it costs $8 to stream a movie, how many moviesshould the roommates stream to maximize totalsurplus?c. If they choose the optimal number from part (b)and then split the cost of streaming the moviesequally, how much surplus does each personobtain from watching the movies?d. Is there any way to split the cost to ensure thateveryone benefits? What practical problems doesthis solution raise?e. Suppose they agree in advance to choose theefficient number and to split the cost of the moviesequally. When Dwayne is asked his willingness topay, will he have an incentive to tell the truth? Ifso, why? If not, what will he…
4help plz

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Microeconomics

Economics

ISBN:

9781305156050

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

Principles of Microeconomics

Economics

ISBN:

9781305156050

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

SEE MORE TEXTBOOKS