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Consider 3 neighbors (Ben, Jill and Lisa) deciding whether or not to have a streetlight inthe neighborhood. The light costs $600. They agree in advance that if the light is provided they would share the costs equally. Ben is willing to pay $150, Jill $175 and Lisa $450 for the light.
a) If the decision is made based on majority voting, what is the outcome?
b) Determine if each of Ben, Jill or Lisa is pivotal in the sense that her/his presence or absence will affect the (optimal) outcome.
c) Calculate the externality imposed by the presence or absence of each of them.
d) Calculate the Clarke tax to be imposed on each of them so that they willtruthfully reveal their willingness to pay.
Graph the q = 100 isoquant. Indicate the points on that isoquant de.ned in part a and part b. What is the RTS along this isoquant? Explain why the RTS is the same at every point on the isoquant. So i know that my labor for part A is 80, labor for ..
Illustrate what do you think are the most significant determinants that would impact the supply part of the banking industry.
Using HD to denote hot drinks and T to denote temperature, we can express the idea that the amount of hot drinks that people drink depends on the temperature by the notation HD = HD(T).
Evaluate the financial performance of the company using the information provided in the scenario. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term and how each factor influences mana..
Dividend in year 1 = $8, growth = 6%, floatation costs percentage of stockprice = 11.4%, and the current stock price = $58.
Draw a graph illustrating this market and in your graph identify the equilibrium price, equilibrium quantity, all intercepts, the area that is CS and the area that is PS.
Is the demand for electricity much price elastic when measured over a short period of time or a long period time. Explain.
illustrtae what are some of the price and how do expectations inluence the effects of inflation.
Explain the nation will move toward an international monetary system or fixed exchange rates in the future.
When Mrs. Edwards raises the price of Grad Nite tickets, a. the demand for movie tickets increases because of the increase in the number of buyers.
Show these data graphically. Upon what specific assumptions is this production possibilities curve based? What would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a lev..
The project for this course is to identify forecasts of three key macroeconomic variables from publically available sources and write a report in which you describe the range of forecasts for each variable.
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