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Could you please help me with question 3 (a-b)!! :) thank you, happy fall! 3. Travel cost. Suppose that you are analyzing the use value
Could you please help me with question 3 (a-b)!! :) thank you, happy fall!
3. Travel cost. Suppose that you are analyzing the use value of a public beach. Controlling for income, age, preferences, and everything else that might affect beach visits, you have gathered the following data: Travel cost 0 20 39 40 # of day trips/yr 40 20 0 a. If there are 1,000 people in each of the three travel-cost categories, $0, $20, and $39, what is the approximate total consumer surplus arising from day trips to this beach? b. Your boss needs help in evaluating a decision to close this particular beach in order to preserve the habitat for an endangered seabird, called a plover, which inhabits only this stretch of beach. From a CV study, you know that U.S. citizens are WTP $1,500,000 per year to preserve the plover. Based on your analysis and your understanding of the usefulness and limitations of these benefit analyses, do you conclude that protecting the plover is efficient? Argue from both sides in a few paragraphsStep by Step Solution
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