EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 17, Problem 4RQ
To determine
What prevents the locals from using up the resources very soon.
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Various cultures have come up with their own methods to limit catch size and prevent fishery collapse. In old Hawaii, certain fishing grounds near shore could be used only by certain individuals. And among lobstermen in Maine, strict territorial rights are handed out so that only certain people can harvest lobsters in certain waters. Discuss specifically how these systems provide incentives for conservation. Then think about the enforcement of these property rights. Do you think similar systems could be successfully enforced for deep-sea fishing, far off shore?
possible
Submit c
The figure on the right shows the costs and benefits associated with wood pulp
production. Without regulation the market will produce
a price of
Price (dollars per ton)
tons of wood pulp at
per ton.
1,100
MSC
O A. 5; $700
1,000
O B. 3; $600
900
O C. 5; $1,100
800
O D. 3; $900
S=MC
O E. 4; $900
700
600
D=MB
500
2
4.
4
Quantity (tons per week)
Next
Suppose there is a public good, this good would add 50 dollars in benefit to each of the 1000 people living in the city. At what costs would they
agree to build it?
O 75000
O 40000
O 25000
O both 40000 and 25000
Chapter 17 Solutions
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- The diagram below shows the marginal costs of pollution abatement for two firms, Firm 1 and Firm 2. Dollars 60 50 40 30 20 10 0 Firm 1 FIGURE 17-5 MC₁ li lz ls ls ls lo l Abatement Dollars 60 50 40 30 20 10 0 Firm 2 MC₂ li z ls ls ls Q6 Q7 Abatement Refer to Figure 17-5. Suppose Firm 1 and Firm 2 are each abating Q3 units of pollution. If the government imposed an emissions tax of $40 per unit of emissions, OA) each firm would abate to the same level. B) Firm 2 would increase abatement beyond Q3 and Firm 1 would abate less than Q3. C) each firm would abate to Q3. D) the level of pollution would be optimal. E) Firm 1 would increase abatement beyond Q3 and Firm 2 would abate less than Q3.arrow_forwardAcres 1 2 3 4 5 6 7 -$5 -$2 $0 F $2 Sophia $10 8 6 3 1 0 0 Amber $24 18 14 8 6 4 2 Cedric $6 5 4 3 2 1 0 Refer to Table 11-1. Suppose the cost to build the park is $24 per acre and that the residents have agreed to split the cost of building the park equal. If the residents decide to build a park with size equal to the number of acres that maximizes total surplus from the park, how much total surplus will Sophia receive? 900127353arrow_forwardSuppose, under license from Apple, a factory in China buys all the components for an iPhone from multiple manufacturers for $150 They assemble the iPhone and sell it to Apple for $350. Apple then sells the phone to customers for $699. How much value does Apple add during their step in the production process? Ⓒ$1.50 1200 O $349 O $350arrow_forward
- With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. If the firm can sell these 400 loaves at $2 per unit, what is its total revenue? Its total cost? Its profit or loss? Will it continue to produce banana bread? If this firm’s situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good?arrow_forwardPRICE (Dollars per unit of electric cars) 500 450 400 350 300 250 200 150 100 50 0 H 0 O □ 1 0 ■ The market equilibrium quantity is O 3 5 QUANTITY (Units of electric cars) ☐ Supply (Private Cost) 6 Demand (Private Value) Social Cost units of electric cars, but the socially optimal quantity of electric car production is To create an incentive for the firm to produce the socially optimal quantity of electric cars, the government could impose a per unit of electric cars. units. of 1arrow_forward2 B agriculture Here's a production possibility frontier graph. In this example.... At point E, approximately what is the cost of another unit of industry? O6 units of agriculture O 4 units of agriculture 9 10 11 O2 units of agriculture O 1 unit of agriculture O 0 units of agriculturearrow_forward
- Real wages earned by recent Mexican male migrants to the United States are as much as times higher than those earned by similarly educated men in Mexico. Multiple Choice O 5 O 6 O 2 10 Xarrow_forward2 In terms of being digitally connected, Canadian consumers: O A. have generally chosen to back away from 24/7 access. O b. are among the most connected in the world. O c. maintain a preference for desktop or laptop computers. O d. lag behind many countries but are beginning to embrace the technologies. O e. lag behind most European and Asian countries.arrow_forwardThe graph below shows production possibilities frontiers for Cornelius and David, two priests that aid the Mondoshawan race. David is Cornelius' apprentice, and they each spend their time either deciphering old prophecies or developing plans to save the world (which comes in handy later). Use this information to answer the following 3 questions. Plans 10 9 8 7 6 LO 5 4 3 2 1 8° Cornelius David 0 1 2 3 4 5 c. Both (a) and (b). d. Neither (a) nor (b). 6 7 8 b. 10 translations and 4 plans. C. 5 translations and 11 plans. d. 9 translations and 9 plans. 9 Translations 10 1. (Cornelius and David) Which of the following statements is true? a. Cornelius' opportunity cost of one translation is ½ of a plan. b. Cornelius' opportunity cost of one translation is less than David's opportunity cost of one translation. 2. (Cornelius and David) If David and Cornelius engage in trade, which of the following points is both feasible and efficient in production? a. 18 translations and 14 plans.arrow_forward
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