Pearson eText Economics -- Instant Access (Pearson+)
Pearson eText Economics -- Instant Access (Pearson+)
13th Edition
ISBN: 9780136879459
Author: Michael Parkin
Publisher: PEARSON+
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Chapter 17, Problem 22APA
To determine

Efficient quantity of water purchased.

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A student is studying for an exam 2 hours a day and is debating whether 3 Baluolto study an extra hour. The student's marginal benefit *
he table below displays the private marginal benefit and the private marginal cost for Sam's Flower Farm. Quantity (acres) MC Private 100 200 300 400 500 $650 675 700 725 750 MB Private $675 675 675 675 675 m's Flower Farm produces wild flowers. Each acre produces $675 worth of flowers per month. Sam's farm also serves as a al attraction for tourists looking to view birds and butterflies increasing the revenues of local businesses by $25 per month. at is the socially efficient number of acres for Sam to plant if all costs and benefits are considered?
22. Both Wisconsin and Illinois border Lake Michigan. The lake is becoming polluted and both states are deciding whether or not to clean it. If Wisconsin decides to clean the fake it will cost 1200 and generate social benefits of 1500 however, Wisconsin will receive only 1100 of those social benefits while neighbor Illinois will receive the other 400. If Illinois cleans the lake, it will cost them 700 and generate social benefits of 900 â€" however, Illinois will receive only 600 of those benefits, Wisconsin will receive the remaining 300. If a state does not clean the lake, it experiences a cost of $0. If Wisconsin does not clean the lake and Michigan does then the payoffs will be
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