In the tragedy of the commons model when an additional fisherman goes fishing he: A) Reduces the total revenue of fishing for other fishermen. B) Increases the average cost for other fishermen. C) Increases the opportunity cost of fishing for other fisherman. D) Increases the total cost of fishing for other fishermen
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In the tragedy of the commons model when an additional fisherman goes fishing he:
A) Reduces the total revenue of fishing for other fishermen.
B) Increases the average cost for other fishermen.
C) Increases the
D) Increases the total cost of fishing for other fishermen.
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Solved in 4 steps
- The costs or benefits of a market activity that affect a third party are called: A) externalities. B) public goods. C) common resource goods. D) artificially scarce (or club) goods.Draw a graph with pollution abatement on the horizontal axis (assume a firm can remove up to 100 tons of pollution) and dollars ($) on the vertical axis. Draw one firm's marginal abatement cost curve (MC). Say a pollution tax is imposed on the firm. a. What are the costs the firm would incur if they chose to not reduce pollution at all? b. Is there a different level of pollution abatement the firm could choose that would result in lower costs? c. Label that level of abatement A* on your graph and shade in the area that represents the cost-savings as compared to when they polluted 100 tons (did no abatement)The National Hockey League decides to put a new franchise in Hamilton which is close to existing teams in Buffalo and Toronto. Which of the following best describes the impact of this decision? Select one: a. product-variety externality, which harms consumers b. business-stealing externality, which benefits consumers c. product-variety externality, which benefits consumers d. business-stealing externality, which harms consumers
- In markets with strong network externalities: a. It is common for the market to be split equally across several firms. b. Market shares typically fluctuate in opposite directions, i.e. high market share today implies lower market share tomorrow. c. Market entry happens frequently. d. A single firm tends to dominate the market.QUESTION 14 1² per 3 ranchers use a grassland to feed their cows. The ranchers must choose how many cows to raise. The benefit of raising a cow for a rancher is 100- cow, where G is the total quantity of cows using the grassland. The marginal cost of raising a cow is 10. Hence, the net benefit of raising cows for any rancher is -C²)g- 10g, where g is the quantity of cows raised by the rancher. What is the total quantity of cows using the grassland, implied by the Nash 3 (100- Equilibrium? 0 9 √5 3 √5 O 9 12 QUESTION 15 3 ranchers use a grassland to feed their cows. The ranchers must choose how many cows to raise. The benefit of raising a cow for a rancher is 90-G per cow, where is the total quantity of cows using the grassland. The marginal cost of raising a cow depends on the number of cows and equal to MC = 6g₁, where g, is the number of cows raised by a rancher i, i = 1,2,3. What is the optimization problem that rancher 1 solves? max, (90-G)g₁-691 max (90-G)G-6G max (90-C)G-3G² 9₁…Table 17-1Imagine a small town in which only two residents, Rochelle and Alec, own wells that produce safe drinking water. Each week Rochelle and Alec work together to decide how many gallons of water to pump. They bring the water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Rochelle and Alec can pump as much water as they want without cost so that the marginal cost of water equals zero. The weekly town demand schedule and total revenue schedule for water is shown in the table below: Quantity(in gallons) Price Total Revenue(and Total Profit) 0 $60 $0 100 55 5,500 200 50 10,000 300 45 13,500 400 40 16,000 500 35 17,500 600 30 18,000 700 25 17,500 800 20 16,000 900 15 13,500 1,000 10 10,000 1,100 5 5,500 1,200 0 0 Refer to Table 17-1. If this market for water were perfectly competitive instead of…
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- Positive externality No externality Negative externality Answer Bank The U.S. government decides to Lyle and Julia from The hing company icago house all of its nuclear waste to Los Angeles with their newborn infant who cries the entire way illegally hunts the Coelacanth, material at Cactus Cliff, WY. As a critically endangered fish that is close to extinction with all nuclear waste, there is no fail-safe protection method Jane raises bees to produce honey Ronald, the first in his family to attend for her business, but her bees also college, graduates from medical school pollinate many flowers in the neighborhood where she lives. and decides to return home to work as a doctor in his old neighborhood.The town has a kayak rental and visitors use the lake for recreation. The town also has a chemical lab that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the chemical lab's waste decreases the kayak rental's economic profit. Suppose that the chemical lab could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the kayak rental would no longer be affected. If the chemical lab uses the recycling method, then the chemical lab's economic profit is $900 per week, and the kayak rental's economic profit is $2,600 per week. If the chemical lab does not use the recycling method, then the chemical lab's economic profit is $1,600 per week, and the kayak rental's economic profit is $1,500 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the chemical lab's…Explain each one of these. 1. Government Black Entry 2. Control Key Resources 3. Network Externalities 4. Economic of Scale