Questions 1-4 The Alpha, Beta, and Gamma residents of a village are install street lights along the main street of the village The marginal benefit (Am) of the streetlights is: - Alpha: Am = 10.000-80x. - Beta: Am = 8.000-90x. - Gamma: Am = 14.000-70x 1. If a streetlight costs $8,000, what is the optimal collective number of streetlights? а. 25. b. 65. с. 100 d. 110 2. What is the marginal benefit of Alpha at the optimal number of street lights? а. О. b. 2,000 с. 3,500. d. 4,500. 3. What is the marginal benefit of Gamma at the optimal number of street lights? а. О. b. 6,000. с. 7,000 d. 9,000 4. How will Citizen Beta react to the proposal to levy a flat tax of $5,000 per citizen per streetlight to fund the development of streetlights? He a. Will be willing to pay the tax. b. will refuse to pay the tax. c. is unable to conclude whether Beta will be willing to pay the tax or not. d. will be indifferent to the "neither for nor against" street lights.

Questions 1-4 The Alpha, Beta, and Gamma residents of a village are install street lights along the main street of the village The marginal benefit (Am) of the streetlights is: - Alpha: Am = 10.000-80x. - Beta: Am = 8.000-90x. - Gamma: Am = 14.000-70x 1. If a streetlight costs $8,000, what is the optimal collective number of streetlights? а. 25. b. 65. с. 100 d. 110 2. What is the marginal benefit of Alpha at the optimal number of street lights? а. О. b. 2,000 с. 3,500. d. 4,500. 3. What is the marginal benefit of Gamma at the optimal number of street lights? а. О. b. 6,000. с. 7,000 d. 9,000 4. How will Citizen Beta react to the proposal to levy a flat tax of $5,000 per citizen per streetlight to fund the development of streetlights? He a. Will be willing to pay the tax. b. will refuse to pay the tax. c. is unable to conclude whether Beta will be willing to pay the tax or not. d. will be indifferent to the "neither for nor against" street lights.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 19P

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