Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 13, Problem 3SCQ
The Gizmo Company is planning to develop new household gadgets. Table 13.4 shows the company’s demand for financial capital for research and development of these gadgets, based on expected
- If the going interest rate is
- Assume that the interest rate is still
How much will the firm invest if it also receives the social benefits of its investment? (Add an additional
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Tell whether each of the following goods is best characterized as (1) a private good; (2) a public good; (3) an open-access resource; or (4) a club good. briefly explain
(a) A video game
(b) Clean water (swimmable, fishable, drinkable)
(c) Landscaping at a public university
(d) News website
(e) An electric utility
(F) National defense
(g) A laptop computer
In the economy of Libro, when 1 million yoga mats are produced each year, the citizens of Libro are willing to give
up 9 protein shakes to get one yoga mat.
Draw a marginal benefit curve for the economy of Libro that is consistent with this information. Label it.
Draw an arrow along the marginal benefit curve to illustrate the change in marginal benefit and change in the
quantity of yoga mats as the quantity of yoga mats produced increases.
10-
8-
6-
2-
0
Willingness to pay (protein shakes per yoga mat)
ADD A LABEL
+
Yoga mats (millions per year)
10
Q
4. Consider a community with 80 vacant parcels. The value of developed parcels can be
represented by V=80-X, where V is measured in 1000s of $. X represents the number of
developed parcels. Each parcel costs 10,000 (C=10) to prepare for development.
The social value of undeveloped parcels can be represented by the function U=10+X, where U
is also measured in 1000s of $.
What is the efficient number of developed parcels?
How many parcels will be developed if each parcel is owned by a separate individual,
maximizing their own profits?
Chapter 13 Solutions
Principles of Economics 2e
Ch. 13 - Do market demand curves reflect positive...Ch. 13 - Suppose that Sonys R. Is this a private or social...Ch. 13 - The Gizmo Company is planning to develop new...Ch. 13 - The Junkbuyers Company travels from home to home,...Ch. 13 - When residents in a neighborhood tidy it and keep...Ch. 13 - Education provides both private benefits to those...Ch. 13 - Which of the following goods or services are...Ch. 13 - Are the following goods non-rival in consumption?...Ch. 13 - In what ways (it) company investments in research...Ch. 13 - Will the demand for borrowing and investing in R&D...
Ch. 13 - Why might private markets tend to provide too few...Ch. 13 - What can government do to encourage the...Ch. 13 - What are the two key characteristics of public...Ch. 13 - Name two public goods and explain why they are...Ch. 13 - What is the free rider problem?Ch. 13 - Explain why the federal government funds national...Ch. 13 - Call a company be guaranteed all of the Social...Ch. 13 - Is it inevitable that government must become...Ch. 13 - How do public television stations, like PBS, try...Ch. 13 - Why is a football game on ESPN a quasi-public good...Ch. 13 - Provide two examples of goods/services that are...Ch. 13 - Radio stations, tornado sirens, light houses, and...Ch. 13 - HighFlyer Airlines wants to build new airplanes...Ch. 13 - Assume that the marginal private costs of a film...Ch. 13 - Becky and Sarah are sisters 1who share a room....
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