{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

practiceproblems5 - 1 Practice Problems Week 5 Consider a...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Practice Problems Week 5 Consider a ski resort. Let Q be the quantity of running lifts in the resort. How would you characterize the type of good being offered: is it rivalrous? excludable? Suppose there are two types of snowboarders: type 1, who go up once, twice a year, and type 2, who go up every weekend. Suppose the demand for running lifts is: D 1 = 20 - Q D 2 = 45 - Q If there are 6 people of type 1 and 4 people of type 2, what’s the total demand? The marginal cost of building the resort with Q lifts is MC = 20 Q . Suppose a benevolent government owns the ski resort and would like to build it for as many folks as would be socially efficient. How many lifts does the government build? What would be the entry fee? Now a monopolist owns the resort and charges an entry fee. How many lifts and at what entry fee?
Image of page 1

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

View Full Document Right Arrow Icon
2 Solutions Consider a ski resort. Let Q be the quantity of running lifts in the resort. How would you characterize the type of good being offered: is it rivalrous? excludable?
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern