Econ 450 Winter 2015 HW 1 - Econ 450 Winter 2015 HW 1 1 Assuming no government intervention or provision briey discuss why public education may be

Econ 450 Winter 2015 HW 1 - Econ 450 Winter 2015 HW 1 1...

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Econ 450 Winter 2015 HW 1 1. Assuming no government intervention or provision, briefly discuss why public education may be underprovided if financed exclusively by private contributions. 5 points. 2. Define and explain theCoase Theorem, and relate it to the First WelfareTheorem. 5 points. 3. Consider the following market for a private good, where Anne andBeverly’s demand curves are given by 4. Arturo, Bashir, and Carl share a house in Fremont, and each has his own bedroom. They heat the house with a shared wood-burning stove. Arturo values one hour of heating at 6.5 dollars, Bashir at 8 dollars, and Carl at 10 dollars (with one hour of heating being as valuable as the next). Suppose heat from the stove is a pure public
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