Homework Help is Here – Start Your Trial Now!
Business
Economics
2. A farmer's fields are right next to the train tracks, where sparks from the trains set the field on fire. The railroad profit from running zero, one, two or three trains is shown below. The columns indicate the number of trains running. Total railroad profits are the total profits to the railroad from running the specified number of trains. Total lost farmer profits are total profits the farmer loses from a specified number of trains running. Trains 100 150 60 1 2 3 $200 $0 $300 $100 Total Railroad Profit $350 $410 Total Lost Profit for Farmer $125 $300 100 25 175 3. What is the socially optimal number of trains? a) 0 b) 1 c) 2 d) 3 e) Not enough information 4. How many trains will run if the farmer is granted a property right to be free of sparks? a) 0 b) 1 c) 2 d) 3 e) Depends on transaction costs

2. A farmer's fields are right next to the train tracks, where sparks from the trains set the field on fire. The railroad profit from running zero, one, two or three trains is shown below. The columns indicate the number of trains running. Total railroad profits are the total profits to the railroad from running the specified number of trains. Total lost farmer profits are total profits the farmer loses from a specified number of trains running. Trains 100 150 60 1 2 3 $200 $0 $300 $100 Total Railroad Profit $350 $410 Total Lost Profit for Farmer $125 $300 100 25 175 3. What is the socially optimal number of trains? a) 0 b) 1 c) 2 d) 3 e) Not enough information 4. How many trains will run if the farmer is granted a property right to be free of sparks? a) 0 b) 1 c) 2 d) 3 e) Depends on transaction costs

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter13: Positive Externalities And Public Goods
Section: Chapter Questions
Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...
See similar textbooks
icon
Related questions
Question

Hello, can you answer questions 2 and 4 here? 

A farmer's fields are right next to the train tracks, where sparks from the trains set the field on fire. The railroad profit from running zero, one, two or three trains is shown below. The columns indicate the number of trains running. Total railroad profits are the total profits to the railroad from running the specified number of trains. Total lost farmer profits are total profits the farmer loses from a specified number of trains running. 2. Trains 100 150 60 1 2 $350 $125 $410 $300 $200 $300 $100 Total Railroad Profit Total Lost Profit for Farmer $0 100 25 175 3. What is the socially optimal number of trains? a) 0 b) 1 c) 2 d) 3 e) Not enough information How many trains will run if the farmer is granted a property right to be free of sparks? 4. a) 0 b) 1 c) 2 d) 3 e) Depends on transaction costs
Transcribed Image Text:A farmer's fields are right next to the train tracks, where sparks from the trains set the field on fire. The railroad profit from running zero, one, two or three trains is shown below. The columns indicate the number of trains running. Total railroad profits are the total profits to the railroad from running the specified number of trains. Total lost farmer profits are total profits the farmer loses from a specified number of trains running. 2. Trains 100 150 60 1 2 $350 $125 $410 $300 $200 $300 $100 Total Railroad Profit Total Lost Profit for Farmer $0 100 25 175 3. What is the socially optimal number of trains? a) 0 b) 1 c) 2 d) 3 e) Not enough information How many trains will run if the farmer is granted a property right to be free of sparks? 4. a) 0 b) 1 c) 2 d) 3 e) Depends on transaction costs
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Best Response Function
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS