options for blank three drop down: efficient allocation OR over-provision OR under-provision National Public Radio (NPR) is a public good. The cost (supply) of each "unit" of NPR is P=2. Derek's valuation for eachunit of NPR (demand) is given by PD-10-Q, and Kim's valuation is given by PK-4-0.25Q.The total social valuation (demand) of NPR is Ps=The socially optimal amount of NPR isunits.Without intervention, the private market would lead to anQ.of NPR.

NPR is a public good Cost; P = 2 per unit Derek's Valuation/Demand; PD = 10-Q Kim's…

National Public Radio (NPR) is a public good. The cost (supply) of each "unit" of NPR is P=2. Derek's valuation for each unit of NPR (demand) is given by Pp-10-Q, and Kim's valuation is given by PK=4-0.25Q. The total social valuation (demand) of NPR is Ps= The socially optimal amount of NPR is units. Without intervention, the private market would lead to an Q. of NPR.

National Public Radio (NPR) is a public good. The cost (supply) of each "unit" of NPR is P=2. Derek's valuation for each unit of NPR (demand) is given by Pp-10-Q, and Kim's valuation is given by PK=4-0.25Q. The total social valuation (demand) of NPR is Ps= The socially optimal amount of NPR is units. Without intervention, the private market would lead to an Q. of NPR.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter17: Externalities And The Environment

Section: Chapter Questions

Problem 10PAE

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National Public Radio (NPR) is a public good. The cost (supply) of each "unit" of NPR is P=2. Derek's valuation for each unit of NPR (demand) is given by PD=10-Q, and Kim's valuation is given by PK-4-0.25Q. The total social valuation (demand) of NPR is Ps= Q. The socially optimal amount of NPR is units. Without intervention, the private market would lead to an ♦ of NPR.
National Public Radio (NPR) is a public good. The cost (supply) of each "unit" of NPR is P=2. Derek's valuation for each unit of NPR (demand) is given by PD=10–Q, and Kim's valuation is given by PK=4–0.25Q.The total social valuation (demand) of NPR is PS=Answer-AnswerQ.The socially optimal amount of NPR is Answer units. Without intervention, the private market would lead to an Answer of NPR.
Public wifi hotspots grant many external benefits on society: more equitable access to the internet, increased educational opportunities, and so on. Therefore, the market equilibrium quantity of public wifi hotspots does not equal the socially optimal quantity. The following graph plots the demand for public wifi hotspots (their private value), the supply of public wifi hotspots (the private cost of producing them), and the social value of public wifi hotspots, including both the private value and external benefits. Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially optimal quantity.
Public wifi hotspots grant many external benefits on society: more equitable access to the internet, increased educational opportunities, and so on. Therefore, the market equilibrium quantity of public wifi hotspots does not equal the socially optimal quantity. The following graph plots the demand for public wifi hotspots (their private value), the supply of public wifi hotspots (the private cost of producing them), and the social value of public wifi hotspots, including both the private value and external benefits. Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially optimal quantity. PRICE OF PUBLIC WIFI HOTSPOTS Supply (Private Cost) Social Value Demand (Private Value) QUANTITY OF PUBLIC WIFI HOTSPOTS Market Equilibrium Socially Optimal Level ?
The cost (supply) of each "unit" of NPR (National Public Radio) is P=9. Derek's valuation for each unit of NPR (demand) is given by Pp=20-2Q, and Kim's valuation is given by Pg=10-Q. The social valuation of NPR is Ps= Q. The socially optimal amount of NPR is units. Without intervention, the private market would lead to an of NPR. Suppose the government decides to subsidize NPR in order to achieve the socially optimal amount of NPR. The total demand function is Qr= P. The appropriate subsidy is $ (include 2 decimals) per unit of NPR.
Three individuals, Juan, Madison and Hassan, make up the entire market for some private good. Their marginal willingness-to-pay functions for this good are shown below. The marginal cost of providing this good is MC =25 + 0.25Q Juan MWTP = 100 -Q Madison MWTP = 210 - 2.10 Hassan MWTP = 240 - 2.4Q a) Derive the aggregate MWTP function for this private good b) What is the socially-efficient price and quantity? Graph the aggregate MWTP and MC curve, and identify the socially-efficient price and quantity. c) How much of this good will Juan, Madison and Hassan each decide to consume at this price? d) Compute total willingness-to-pay, total cost and net value at the socially-efficient outcome.
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Parks confer many external benefits on society: open space, trees that reduce pollution, and so on. Therefore, the market equilibrium quantity of parks is not equal to the socially optimal quantity. The following graph shows the demand for parks (their private value), the supply of parks (the private cost of producing them), and the social value of parks, including both the private value and external benefits. Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially optimal quantity.
Parks confer many external benefits on society: open space, trees that reduce pollution, and so on. Therefore, the market equilibrium quantity of parks is not equal to the socially optimal quantity. The following graph shows the demand for parks (their private value), the supply of parks (the private cost of producing them), and the social value of parks, including both the private value and external benefits. Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially optimal quantity. (?) Supply (Private Cost) Market Equilibrium Socially Optimal Level Social Value Demand (Private Value) QUANTITY OF PARKS PRICE OF PARKS