Answer:
496 CM
IM SO SORRY IF THIS IS WRONG
Step-by-step explanation:
Answer:
a. Using the inverse demand for each, solve for the social marginal benefit curve.
Bob: Scott:
Q = 40-P Q = 30 – P
(-1)Q – 40 = -P(-1) (-1)Q – 30 = -2P
40 – Q = P 30 – Q = 2P
((30 – Q) = 2P)/2
15 – 1/2Q = P
P = 15 – 1/2Q + 40 – Q
P = 55 – 1.5Q
Scott is no longer willing to pay anything when Q >30
Social Marginal Benefit curve: Q = 40 - P
b. What is the socially efficient amount of plowing?
SMB = SMC
35 = 55 – 1.5Q
Subtract from both sides and rearrange
1.5Q = 20
Q = 13.33
c. Suppose the input costs of plowing fell and marginal costs of plowing were now constant at $5.
55 – 1.5Q = 5
55-5 = 1.5Q
50 = 1.5Q
33.3 = Q*
Answer:
Step-by-step explanation:
5(2+7) 5 x 9 =45
5 x(2+7)
5 x(9)
5 x 9
= 45
