Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics)
20th Edition
ISBN: 9780077660819
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill 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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Complete the accompanying table and answer the accompanying questions. (L01, LO6, LO7)
a. At what level of the control variable are net benefits maximized?
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The price of a gallon of gasoline in California was $0.99 in 1997, and it is currently $3.69. By what factor have the prices increased?
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(c) the discount rate is 2%
(d) the marginal cost of renewable energy is $9, where c<d<a.
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How long will it take, for a country to transition to a renewable energy source?
Chapter 17 Solutions
Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics)
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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?arrow_forwardNewfoundland’s fishing industry has recently declined sharply due to overfish- ing, even though fishing companies were supposedly bound by a quota agree- ment. If all fishermen had abided by the agreement, yields could have been maintained at high levels. LO4 Model this situation as a prisoner’s dilemma in which the players are Company A and Company B and the strategies are to keep the quota and break the quota. Include appropriate payoffs in the matrix. Explain why overfishing is inevitable in the absence of effective enforcement of the quota agreement. Provide another environmental example of a prisoner’s dilemma. In many potential prisoner’s dilemmas, a way out of the dilemma for a would-be cooperator is to make reliable character judgments about the trustworthiness of potential partners. Explain why this solution is not avail- able in many situations involving degradation of the environment.arrow_forward(Last Word) The combined cost of Social Security and Medicare programs was what percent of U.S. GDP in 2008 (A) 7.6 (B) 12.4 (C) 17.2 (D) 2.9arrow_forward
- Concern  over  politically  controlled  supply  and  finite  availability  of  non-renewable  energy  resources  such  as  crude  oil  and  natural  gas  has  prompted  large  crude   oil-consuming  nations  to  seek  alternate  renewable  energy  sources.  Furthermore,  environmental  concerns  associated  with  carbon  dioxide  and  other  greenhouse  gas  emissions  have  prompted  countries  with  large   agricultural  tracts  of  land  to  seek  and  develop  clean,  renewable  biofuels  that  are  not  only  environmentally  friendly,  but  which  also  contribute  to  sustainable  eco-nomic  growth  and  energy  security.  Developing  biofu-els  does  not  need  to  be  a  panacea,  however,  real  chal-lenges  must  be  overcome  to  prevent  economic  costs  from  exceeding  social  benefits.  For  example,  countries  should  take  extreme  care  in  implementing  national  biofuel policies because in the rush to energy indepen-dence, more pollution may occur, and resources…arrow_forwardSuppose that there are three beachfront parcels of land available for sale in Asilomar and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the minimum selling price of each is $445,000. The following table states each person's willingness and ability to purchase a parcel. Person Willingness and Ability to Purchase (Dollars) Ana 510,000 Charles 470,000 Dina 420,000 Gilberto 390,000 Juanita 380,000 Yakov 600,000  Which of these people will buy one of the three beachfront parcels? Check all that apply. A. Ana  B. Charles  C. Dina  D. Gilberto  E. Juanita  F. Yakov Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $432,500. This fourth…arrow_forward2.- Assume that consumers are uniformly distributed along a one-mile stretch of a beach. N ice cream vendors are pondering where to position their carts. The price that they are allowed to charge is fixed by the EACAC (Equal Access to Coolness for All Coalition). (Also, each consumer will buy exactly one ice cream.) (a) Show that there is no equilibrium (in locations) if N=3. (b) Suppose N=5 and vendors position their cart each at one of the (mile) points ( 1/6, 2/6, 3/6, 4/6, 5/6 ) is that an equilibrium?arrow_forward
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