People are increasingly dependent upon social media to connect with friends and family and to receive essential news. This means that high-speed internet access has become an essential service. High-speed internet access is relatively non-rival, and, when people do not use passwords, it is non-excludable. High-speed internet is therefore Underprovided by the market. Overused by the market. Efficiently used and provided by the market. Ambiguously used and provided by the market. QUESTION 18 Suppose that there are three people in a community that want public internet access. Use the table of marginal willingness to pay for public internet hotspots below for #18 - 19. TIT Number of Person A Person B Person C Hotspots 30 $20 $10 10 10 20 $25 $20 %$425 2415 10 10 $15 310 15 10 If the marginal cost for installing a hotspot is constant at $45 per hotspot and the fixed cost is $0, how many hotspots should the government provide? QUESTION 19 If the marginal cost of installing a hotspot is constant at $45 per hotspot, and the fixed cost is $0, how much should the government tax each person in order to provide the hotspots? Assume that the government taxes all members of the community equally.

People are increasingly dependent upon social media to connect with friends and family and to receive essential news. This means that high-speed internet access has become an essential service. High-speed internet access is relatively non-rival, and, when people do not use passwords, it is non-excludable. High-speed internet is therefore Underprovided by the market. Overused by the market. Efficiently used and provided by the market. Ambiguously used and provided by the market. QUESTION 18 Suppose that there are three people in a community that want public internet access. Use the table of marginal willingness to pay for public internet hotspots below for #18 - 19. TIT Number of Person A Person B Person C Hotspots 30 $20 $10 10 10 20 $25 $20 %$425 2415 10 10 $15 310 15 10 If the marginal cost for installing a hotspot is constant at $45 per hotspot and the fixed cost is $0, how many hotspots should the government provide? QUESTION 19 If the marginal cost of installing a hotspot is constant at $45 per hotspot, and the fixed cost is $0, how much should the government tax each person in order to provide the hotspots? Assume that the government taxes all members of the community equally.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 14SQP

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