Amy, brooke, and chelsea live in minneapolis. amy's demand for bike paths, a public good, is given by q=24-4p. brooke's demand is q-14-p. and chelsea's is q-5-p/3. the marginal cost of building a bike path is mc-18. the town government decides to use the following procedure for deciding how many paths to build. it als each resident how many paths she wants, and it builds the largest number asked for by any resident. to pay for these paths, it then taxes amy, brooke, and chelsea the prices a, b, and c per path, respectively, where a++mo. the residents know these tax rates before stating how many paths they want.) if the taxes are set so that each resident shares the cost evenly ( a c ), how many paths will get built? show that the government can achieve the social optimum by setting the correct tax prices a, b, and c. what prices should it set?

If the findings and the results are not presented properly, the research completed was a waste of time and money. true false

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?

Qwest airlines has implemented a program to recycle all plastic drink cups used on their aircraft. their goal is to generate $7 million by the end of the recycle program's five-year life. each recycled cup can be sold for $0.005 (1/2 cent). a. how many cups must be recycled annually to meet this goal? assume uniform annual plastic cup usage and a 0% interest rate. b. repeat part (a) when the annual interest rate is 12%. c. why is the answer to part (b) less than the answer to part (a)?