Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need answer from e to i dont paste answers from someone else Roger and Zo spend their vacation time at a nice cottage that

i need answer from e to i
dont paste answers from someone else
image text in transcribed
Roger and Zo spend their vacation time at a nice cottage that they own in the countryside. Farmer Torti lives next door and normally lets his twelve sheep graze in his field. The sheep eat so quickly that it causes them to burp loudly, a very disruptive sound for Roger and Zo vacationing next door. Torti is willing to remove sheep from the field when Roger and Zo are there, but his marginal cost of doing so is $1 for the first sheep he removes, $2 for the second sheep, $3 for the third, etc. Roger and Zo derive a (combined) marginal benefit of $12 for the first sheep Torti removes, $11 for the second sheep he removes, $10 for the third sheep he removes, etc. d. Calculate the range of prices per sheep that Roger and Zo could pay Torti to achieve the efficient number. e. Calculate the efficient number of sheep in the field if there were a sound barrier and if Roger and Zo stay at the cottage. f. Calculate the total benefit to Roger and Zo if the sound barrier were there and the corresponding efficient number of sheep were in the field. g. Calculate the total cost to Torti if the sound barrier were there and the corresponding efficient number of sheep were in the field. h. Calculate the maximum amount Roger and Zo would be willing to contribute to the construction of the sound barrier. i. Calculate the maximum amount Torti would be willing to contribute to the construction of the sound barrier. Roger and Zo spend their vacation time at a nice cottage that they own in the countryside. Farmer Torti lives next door and normally lets his twelve sheep graze in his field. The sheep eat so quickly that it causes them to burp loudly, a very disruptive sound for Roger and Zo vacationing next door. Torti is willing to remove sheep from the field when Roger and Zo are there, but his marginal cost of doing so is $1 for the first sheep he removes, $2 for the second sheep, $3 for the third, etc. Roger and Zo derive a (combined) marginal benefit of $12 for the first sheep Torti removes, $11 for the second sheep he removes, $10 for the third sheep he removes, etc. d. Calculate the range of prices per sheep that Roger and Zo could pay Torti to achieve the efficient number. e. Calculate the efficient number of sheep in the field if there were a sound barrier and if Roger and Zo stay at the cottage. f. Calculate the total benefit to Roger and Zo if the sound barrier were there and the corresponding efficient number of sheep were in the field. g. Calculate the total cost to Torti if the sound barrier were there and the corresponding efficient number of sheep were in the field. h. Calculate the maximum amount Roger and Zo would be willing to contribute to the construction of the sound barrier. i. Calculate the maximum amount Torti would be willing to contribute to the construction of the sound barrier

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing And Assurance Services

Authors: Philomena Leung, Paul Coram, Barry J. Cooper, Peter Richardson

6th Edition

1118615247, 9781118615249

More Books

Students also viewed these Accounting questions