Whether the campus should spend &&#35;36;40,000 to clear sidewalks during winter.

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Answer 1

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Chapter 9, Problem 8P

(a)

To determine

Whether the campus should spend &#36;40,000 to clear sidewalks during winter.

(b)

To determine

The decision for clearing up the snow during winter through majority voting in the university.

(c)

To determine

The policy of paying works or not.

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Students have asked these similar questions

Viral infections such as flu are highly contagious. The number of infections and thus the spread of the disease can be prevented by getting vaccinated. However, the decision to take vaccine is voluntary and some people choose not to go for it for various reasons.] [What type of externality occurs by getting vaccinated against contagious diseases? Explain your answer in 100 words or less. [In a diagram, show the market equilibrium quantity of the vaccine. Is the quantity also socially efficient? Explain in 100 words or less and demonstrate using the same diagram. [Suggest one method to achieve a socially efficient outcome. Explain your answer in 100 or less words.

Consider the market for flu vaccines, in which consumption causes positive externalities by creating herd immunity. Quantity supplied is given by Qs=2+2*P Marginal Private Benefit (determines individual demand of consumers of the vaccine i.e. the benefit from not getting sick) is given by Qd=60.5-2.5*MBP. Marginal Social Costs (MPC plus the benefits of externalities) is given by Qd=69.5-2.5*MSB. Plot these 3 curves on a graph with 6 points at P=11,12,13,14,15,16. What is the deadweight loss if only free-market forces are at play (i.e. externalities are not considered by the consumers)? How much should the subsidy be to bring the market to efficient equilibrium?

Public Goods. Suppose a neighborhood in Segovia’s central business area is deciding how many fountains they want to see in the main avenue. There is a first group of 20 neighbors and each has a demand Q = 20 − P for fountains. There is a second group of 5 people, and each has a demand Q = 20 − 2P for fountains. The cost of building each fountain is 225. How many fountains are socially optimal? Fountains are public goods. Hint: To obtain the SMB, please first transform the demand functions into “public goods’ valuations” (“isolate P”) and then multiply them by the amount of neighbors per group. Then you can proceed with the vertical summation.

Answer 2

Question

Chapter 9, Problem 8P

(a)

To determine

Whether the campus should spend &#36;40,000 to clear sidewalks during winter.

(b)

To determine

The decision for clearing up the snow during winter through majority voting in the university.

(c)

To determine

The policy of paying works or not.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 8P

(a)

To determine

Whether the campus should spend &#36;40,000 to clear sidewalks during winter.

(b)

To determine

The decision for clearing up the snow during winter through majority voting in the university.

(c)

To determine

The policy of paying works or not.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 8P

(a)

To determine

Whether the campus should spend &#36;40,000 to clear sidewalks during winter.

(b)

To determine

The decision for clearing up the snow during winter through majority voting in the university.

(c)

To determine

The policy of paying works or not.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 9, Problem 8P

(a)

To determine

Whether the campus should spend &#36;40,000 to clear sidewalks during winter.

(b)

To determine

The decision for clearing up the snow during winter through majority voting in the university.

(c)

To determine

The policy of paying works or not.

Answer 6

Chapter 9, Problem 8P

(a)

To determine

Whether the campus should spend &#36;40,000 to clear sidewalks during winter.

Answer 7

Chapter 9, Problem 8P

(a)

To determine

Whether the campus should spend &#36;40,000 to clear sidewalks during winter.

Answer 8

(b)

To determine

The decision for clearing up the snow during winter through majority voting in the university.

Answer 9

(b)

To determine

The decision for clearing up the snow during winter through majority voting in the university.

Answer 10

(c)

To determine

The policy of paying works or not.

Answer 11

(c)

To determine

The policy of paying works or not.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 9 - Prob. 1Q Ch. 9 - Prob. 2Q Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - Prob. 10Q

Whether the campus should spend &&#35;36;40,000 to clear sidewalks during winter.

Solution Summary: The author explains how the university should spend #36;40,000 to clear sidewalks during winter.

Whether the campus should spend &#36;40,000 to clear sidewalks during winter.

The decision for clearing up the snow during winter through majority voting in the university.

The policy of paying works or not.

Want to see the full answer?

Chapter 9 Solutions

Whether the campus should spend &amp;&amp;#35;36;40,000 to clear sidewalks during winter.

Solution Summary: The author explains how the university should spend &#35;36;40,000 to clear sidewalks during winter.