public_goods-ho_003

public_goods-ho_003 - Common-Pool Resources Public Goods...

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Unformatted text preview: Common-Pool Resources Public Goods Common-Pool Resources (Ch 34) and Public Goods (Ch 36) Common-Pool Resources Public Goods Final Exam Details 20 hours of OH between now and final Review Session: Saturday, 3/12, 4-6pm, NH 1006 Final exam: Tuesday, March 15, 12-3pm, here Format: 12- 15 MC, 2 BB questions, < 3 hours worth Bring: pink ParScore scantron, blue-book (large), pencil, pen, thinking cap Dont bring: calculator, electronic devices, books, notes, etc. Common-Pool Resources Public Goods Final Exam Details Focus of coverage: Equilibrium (16), Monopoly (24,25), Oligopoly, (27), Exchange/General Eq. (31), Externalitites (34), Public Goods (36) For the most part: only cumulative to the extant that new material builds on old How to study: do workouts/quizzes/practice problems, come to OH with questions Next Thursdays class: synthesis. Will revisit important topics/messages Grading: see syllabus Common-Pool Resources Public Goods Clicker Vote The Santa Barbara Bowl (SBB) holds outdoor music events ( M ), earning $2 of revenue from each concert and with total costs of c M ( M ) = M 2 / 4 for M concerts. Ursula is a writer who lives right next to the SBB and who sells her novels on the competitive market at the price of p N = 3. The music that Ursula overhears from the SBB help her concentrate and it costs her c N ( N , M ) = N 2 / 8- M to write N novels. Which tax/subsidy would result in the socially optimal allocation? A) subsidize SBB 1 per concert B) subsidize Ursula M per novel C) tax Ursula 1 per novel D) tax SBB M per concert Common-Pool Resources Public Goods Clicker Vote The Santa Barbara Bowl (SBB) holds outdoor music events ( M ), earning $2 of revenue from each concert and with total costs of c M ( M ) = M 2 / 4 for M concerts. Ursula is a writer who lives right next to the SBB and who sells her novels on the competitive market at the price of p N = 3. The music that Ursula overhears from the SBB help her concentrate and it costs her c N ( N , M ) = N 2 / 8- M to write N novels. Which tax/subsidy would result in the socially optimal allocation? A) subsidize SBB 1 per concert B) subsidize Ursula M per novel C) tax Ursula 1 per novel D) tax SBB M per concert At the social optimum, the external MC imposed by SBB on Ursula is- 1. Subsidizing SBB by 1 for every concert internalizes this externality. Common-Pool Resources Public Goods Common-Pool Resources and Public Goods What do these goods/resources have in common?...
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This note was uploaded on 12/26/2011 for the course ECON 100B taught by Professor Kilenthong during the Fall '08 term at UCSB.

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public_goods-ho_003 - Common-Pool Resources Public Goods...

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