New

Learn smart - Learn online. Upto 88% off on courses for a limited time. View Courses

Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader
Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!

Stuck on Your Question?

Get 24x7 live help from our Top Tutors. All subjects covered.

loader
250 words

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Students Who Viewed This Also Studied

11 Pages
LB5229 Economics For A Sustainable World

Questions: Aligned subject learning outcomes•    LO1: Critically evaluate different economic models and policy/management in different contexts•    LO2: Apply a range of ...

Course

LB5229

Type

Home Work

Subject

Economics

University

James Cook University

Season

Spring

0 Page
Problems and Solutions

...

Course

BMT300

Subject

Economics

University

Seneca College

Season

Fall

1 Page
Problem Statement

[q ...

Course

BMT300

Subject

Economics

University

Seneca College

Season

Fall

1 Page
SL-Control Company

[q ...

Course

BMT300

Subject

Economics

University

Seneca College

Season

Fall

ECON623-Applied Econometrics

Question

Answered

Questions

1.Suppose you live in downtown Pavement City and you would enjoy walking, having picnics, playing basketball, and basically chilling-out in a local city park, if one were available.  Suppose your annual marginal benefit from having access to such a park is:

MB = 20 - (1/20000)X, where X is the size of the park in square feet.  

The City estimates that the marginal cost of building and maintaining such a park would be MC = $25 per square foot.  

(i)If you had to pay for the construction of the park all by yourself, what size park would you build?  Explain why very briefly.  

(ii)If there are 979 additional people (in addition to yourself, for a total of 980 people) living in the vicinity of the park who would all receive about the same annual marginal benefit from having access to the park as yourself, what is the efficient size of park to build, from society's perspective?  

(iii)What is the name of the market failure occurring in this situation?  

(iv)If this market failure is not corrected (say, by a city park construction project), graph and calculate an area that will be equal to the annual deadweight loss suffered by the honorable citizens of the city.  SHOW YOUR WORK!!  

2.Al regularly rehearses his Iggy and the Stooges cover band on his back deck. Practicing on his deck saves him the $500 per year it would take to rent a rehearsal space. Unfortunately, practicing on his deck keeps his neighbor, Marcy, awake at night. The value of Marcy’s lost sleep is $600 per year. 

a.Is it efficient for Al to rehearse on his back deck? Explain your answer. 

b.If the law says that it is illegal for Al to rehearse on his back deck, will Al end up practicing there? What might Marcy do to try to stop him? 

c.Suppose that the law says it is legal for Al to rehearse on his back deck. 

i.How much is Marcy willing to pay to get him to stop? 

ii.What is the minimum amount of money Al is willing to accept in exchange for his silence?

iii.If possible, craft a bargain between Marcy and Al that results in his silence. Show that the bargain (if possible) makes both parties better off. 

d.Given your answers to (b) and (c), does the outcome of this conflict depend on the law? Is the outcome consistent with your answer to (a)? 

e.Suppose that instead of doing $600 damage to one neighbor, Al does $1 damage to 600 neighbors. Are those 600 neighbors as likely to be able to convince him to stop as easily as Marcy can? Explain.

3.A steel factory has the right to discharge waste into a river.  The waste reduces the number of individuals willing to swim in the river.  Let X denote the quantity of waste dumped.

The marginal damage (MD) imposed on the swimmers is given by the equation: 

MD = 2 + 5X.

The factory’s marginal benefit (MB) of dumping waste is given by the equation:

MB = 34 – 3X.

a.Calculate the efficient quantity (from society’s perspective) of waste the factor should dump.

b.What is the efficient fee, in dollars per unit of waste, that would cause the firm to dump only an efficient quantity of waste?

c.What would be the quantity dumped if the firm did not care about the swimmers?

4.There are two proposed uses for a natural area located close to a city – as a park or open pit limestone mine.  A set of costs and benefits is given for a 10-year period for each of the two possible projects. Calculate the net present value for each of the projects using a 10% discount rate.

ECON623-Applied Econometrics

Answer in Detail

Solved by qualified expert

Get Access to This Answer

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

18 More Pages to Come in This Document. Get access to the complete answer.

MyAssignmenthelp.com strives to deliver quality content to students of USA and deliver assignment writing services as per individual assignment assistance. We have built up a pool of 3800+ assignment experts who provide academic writing help in more than 100+ subjects. Our skilled and experienced assignment writers deliver custom-made assistances, and they offer need-based university assignment help to students as per their assignment demands.

More ECON623 ECON623-Applied Econometrics: Questions & Answers

Q
icon

We aren't endorsed by this University

LB5229 Economics For A Sustainable World

Questions: Aligned subject learning outcomes•    LO1: Critically evaluate different economic models and policy/management in different contexts•    LO2: Apply a range of different economic models to identify & evaluate natural resource management problems and solut ...

View Answer
Q
icon

We aren't endorsed by this University

Problems and Solutions

...

View Answer
Q
icon

We aren't endorsed by this University

Problem Statement

[q ...

View Answer
Q
icon

We aren't endorsed by this University

SL-Control Company

[q ...

View Answer

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

Choose Our Best Expert to Help You

icon

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

screener
ribbon
callback request mobile
Have any Query?