The marginal benefits of wildlife habitat preservation in a society with just two individuals, Katya and Miguel, are given in the table below. Suppose that wildlife preservation costs $50 per acre. What is the marginal social benefit of preserving the first acre of wildlife? Katya's marginal benefits Miguel's marginal benefits Acres of wildlife habitat (dollars) (dollars) 1 50 30 2 40 25 3 30 20 4 20 15 5 10 10 6 0 5 Question 2 1 pts The marginal benefits of wildlife habitat preservation in a society with just two individuals, Katya and Miguel, are given in the table below. Suppose that wildlife preservation costs $50 per acre. Should this society preserve the first acre of wildlife? Katya's marginal benefits Miguel's marginal benefits Acres of wildlife habitat (dollars) (dollars) 1 50 30 2 40 25 3 30 20 4 20 15 5 10 10 6 0 5 O Yes. () Itis impossible to determine from the information given. () No. The marginal benefits of wildlife habitat preservation in a society with just two individuals, Katya and Miguel, are given in the table below. Suppose that wildlife preservation costs $50 per acre. How many acres of wildlife habitat should be preserved in this society? Katya's marginal benefits Miguel's marginal benefits Acres of wildlife habitat (dollars) (dollars) 1 50 30 2 40 25 3 30 20 A 20 15 U 10 10 6 5 Question 4 1 pts The marginal benefits of wildlife habitat preservation in a society with just two individuals, Katya and Miguel, are given in the table below. Suppose that wildlife preservation costs $50 per acre. What policy below would achieve the efficient provision of wildlife habitat? Katya's marginal benefits Miguel's marginal benefits Acres of wildlife habitat (dollars) (dollars) 1 50 30 2 40 25 3 30 20 A 20 15 5 10 10 6 0 5 O The competitive market equilibrium will allocate this resource efficiently. O A tax of $25 each for Katya and Miguel. O A tax of $75 each for Katya and Miguel O A tax of $50 per acre for both Katya and Miguel.The marginal benefits of wildlife habitat preservation in a society with just two individuals, Katya and Miguel, are given in the table below. Which individual do you think would be most willing to support the policy proposed in question 37 Katya's marginal benefits Miguel's marginal benefits Acres of wildlife habitat (dollars) (dollars) 1. 50 30 2 40 25 3 30 20 4 20 15 5 10 10 6 0 5 () Katya, because her net benefit of preservation is greater. (O Miguel, because his net benefit of preservation is greater. () There is not enough information given to answer the question. () Neither, because the cost of preservation is greater than the total benefit for both Katya and Miguel. Question 6 1 pts An underground aquifer in a developing country is available to all farms in a small community. It costs 50 dollars per farm per day to operate a pump that can extract groundwater from the aquifer. The value that a farm can obtain by using or selling the water depends on how many farms extract water. Assuming there is no regulation of the aquifer, how many farms will extract groundwater? 150 $140 Number of Farms Marginal Private Marginal Social Marginal Private . Extracting Water Benefit Cost Cast #1z0 1 100 50 S0 #100 B B~y 2 100 50 50 o 3 100 50 50 Marginl Private 4 an 80 50 [T ot 5 80 100 50 o 6 70 10 50 7 &0 120 50 820 Marginal Private 8 50 130 50 Benefit 9 40 140 50 4 8 ? 8 g 19 30 150 S0 Musmier of Famg EXTacting Groenduates An underground aquifer in a developing country is available to all farms in a small community. Assume that it costs 50 dollars per farm per day to operate a pump that can extract groundwater from the aquifer. The value that a farm can obtain by using or selling the water depends on how many farms extract water. What would be the economically efficient number of farms extracting water? $160 $140 Number of Farms Marginal Private Marginal Social Marginal Private $120 Marginal Extracting Water Benefit Cost Cost Social Cos 100 50 50 $ 100 100 50 50 100 50 50 Marginal Private 90 50 Cost 80 100 50 70 110 50 60 120 50 $20 Marginal Private B 50 130 50 Benefit 9 40 140 10 5 6 30 10 150 Number of Farms Extracting Groundwater Question 8 1 pts The graph below depicts the market for an artificially scarce good. What area(s) represent the total social welfare in this market at a price of $50? Price 200 Demand (WTP) A 50 B C 0 Quantity O B+C OA OB OC O A+Be = The graph below depicts the market for an artificially scarce good with a price of $50? What areal(s) represent the potential welfare gain in the market achievable at a different price? Price 200 Quantity OA ) A+B ) B+C OB (O) The are no potential gains in surplus available in this market. oc Question 10 1pts The graph below depicts the market for an artificially scarce good with a price of $50? Assuming firms cannot price discriminate, what price would maximize total welfare in this market? Price 200 Demand (WTP) 50 0 Quantity O $0 (O) Only price discrimination can achieve the maximum total welfare in this market. O $50 O $200