Find the average residential water under the current split, Microeconomics

Suppose you are a regulator in charge of allocating water between residential and agricultural users (farmers) in Southern California. You conduct a survey that finds that under the current split the average residential water consumer would be willing to pay up to $0.70 a gallon for the next gallon of water they consume while the increased market value of crop production from the gallon of water (after farmers pay their costs) to the most profitable farmer would be $0.20. Is the current allocation of water economically efficient (circle: yes or no)? If not, in what direction should the water be reallocated? In a sentence or two explain how we would expect these two quantities to compare to each other if net benefits were maximized.

 

 

Posted Date: 4/1/2013 4:10:07 AM | Location : United States







Related Discussions:- Find the average residential water under the current split, Assignment Help, Ask Question on Find the average residential water under the current split, Get Answer, Expert's Help, Find the average residential water under the current split Discussions

Write discussion on Find the average residential water under the current split
Your posts are moderated
Related Questions
a) Explain the conditions under which a monopolist is able to price discriminate. b) Demonstrate the relationship between a firm's marginal revenue function and its relationship

could the village prepare 14 campsites and grow 350 pawpaws?explain your answer.

7.Consider the following production possibilities table: Option Y X A 0 100 B 80 80 C 120 50 D 140 10 a)Provide a measure of the approximate marginal opportunity cost of

What is checkable bank deposits?

characteristics of microeconomics

Explain about the term cost function. Cost Functions This function measures the minimum cost of producing a specified level of output for some fixed factor prices. Likewise

subsitution effect dominate tha income effect in which good case?


How might a change in the exchange rate affect the domestic economy of the country? A change in the exchange rate - ceteris paribus - will alter relative prices between trading

The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded.