Doncouse_Jeremy_Week6-2

Doncouse_Jeremy_Week6-2 - Jeremy Doncouse ECON202 Key...

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Jeremy Doncouse ECON202 Key Questions Chapter 28 11/8/2008 1) Private Good Quantity Individual 1Individual 2Individual 3 Total Total # Will Pay Will Pay Will Pay Profit Demanded 1 $5 $8 $6 $19 3 2 4 7 5 32 6 3 3 6 4 39 9 4 2 5 3 40 12 5 1 4 2 35 15 6 0 3 1 24 12 7 0 2 0 14 7 8 0 1 0 8 8 Public Good Quantity Individual 1Individual 2Individual 3Collective Will Pay Will Pay Will Pay Total 1 5 8 6 $19 2 4 7 5 16 3 3 6 4 13 4 2 5 3 10 5 1 4 2 7 6 0 3 1 4 7 0 2 0 2 8 0 1 0 1 With private goods the lower the price the higher the demand across the board, while with public goods the law of diminishing margial utility takes place and the collective willingness to pay increases to a maximum then decreases. 2) Q P 1 $4 2 7 4 10 6 13 8 16 10 19 $10 $12 $14 $16 $18 $20 Column E Column B ice
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5 units is where MC = MB. This is where both suppliers and consumers will get the most for their money. 1 2 4 6 8 10 $0 $2 $4 $6 $8 Pric
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3) Program TC MC TB MB Program B should be undertaken because it is the last program where the MB
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This note was uploaded on 03/08/2011 for the course ECON 202 taught by Professor Unknown during the Fall '08 term at Mountain State.

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Doncouse_Jeremy_Week6-2 - Jeremy Doncouse ECON202 Key...

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