Tute13 - answer

Tute13 - answer - ECF1100: MICROECONOMICS Answers to...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECF1100: MICROECONOMICS Answers to tutorial 13 Chapter 12, Review Question 1 When a motorist enters an already congested motorway, the motorway becomes marginally more congested, which increases the travel time of thousands of other motorists. Excessive congestion results because individual motorists have no incentive to take these external costs into account when deciding whether to drive on the motorway. This is an example of congestion externality. Chapter 12, Review Question 5 Because many different governments have an interest in fisheries in international waters, and because agreements about the level of fishing activity are very difficult to monitor and enforce, extinction is a very real possibility. This is an example of the tragedy of the commons. While still posing many challenges, fisheries that are entirely within waters that are part of Australia’s jurisdiction and are regulated by only a single government are less likely to be driven to extinction. Chapter 12, Problem 3 The equilibrium quantity of surf ski rentals is found by solving the following: 5 + 0.1 Q = 20 – 0.2 Q for Q pvt = 50 units per day. To find the socially optimal number of rentals we first find the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Tute13 - answer - ECF1100: MICROECONOMICS Answers to...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online