ECON 431 Final: ECON 431 Cal Poly SLO 2012 Final Exam Solutions
Document Summary
A firm pollutes a local river and causes damage to a swim club downstream. Marginal benefit from polluting and the line mc represents the marginal cost of the pollution damages to swimmers. State your answers to each of the following questions in terms of the areas i, ii, iii, iv, v, and vi. Area iii + v: public goods (40 points) It"s going to be a cold winter night on the shore of lake tahoe, and you and your two ski pals are deciding how much wood to buy for a fire. Adding logs to the fire will warm up the whole cabin and benefit all three of you. The marginal private benefit from the number of logs burned is different for you, angela, and clyde the. Mpb(clyde) = 5 0. 25q , where q is the number of logs. Logs can be purchased for . 00 each: (10 points).
