Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, how much will each type A individual contribute in total?
a. 1875
b. 1500
c. 875
d. 625
a
Economics
You might also like to view...
By refusing to be time inconsistent, a central bank is ________ its reputation and ________ "policy credibility."
A) harming, losing B) harming, gaining C) investing in, losing D) investing in, gaining
Economics
Relative to a competitively organized industry, a monopoly is more likely to produce
A. more output, charge higher prices, and earn economic profits. B. less output, charge lower prices, and earn economic profits. C. less output, charge lower prices, and earn only a normal profit. D. less output, charge higher price, and earn economic profits.
Economics