Scenario: Frank and Nancy live in a small community on Cape Cod in Massachusetts. For simplicity, assume Frank and Nancy are the only individuals in the community. Each has a demand for mosquito control, given by the following table, equations, and figure. Assume that mosquito control is a public good. Mosquito control is provided at a constant marginal cost of $120.
Frank's demand: qFᵣₐnk = 200 - p,
Frank's inverse demand = (Marginal Private Benefit) : p = 200 - q,
Nancy's demand: qNₐncᵧ = 100 - p,
Nancy's inverse demand = (Marginal Private Benefit) : p = 100 - q,
-Refer to the scenario above.In the private market equilibrium,what are the quantities demanded of mosquito control for Frank and Nancy? Explain your answer.
A) 0 units for Frank, 0 units for Nancy
B) 80 units for Frank, 0 units for Nancy
C) 80 units for Frank, 10 unit for Nancy
D) 120 unit for Frank, 20 unit for Nancy
Correct Answer:
Verified
Q195: Explanation: The following figure graphs the answer.
Q196: How is the market demand curve for
Q197: Scenario: Jim and Jane are the only
Q198: An environmental awareness program was launched in
Q199: Scenario: Jim and Jane are the only
Q201: Which of the following can result in
Q202: Scenario: The following excerpt is from Michael
Q203: Your roommate claims we can understand the
Q204: The total willingness to pay for public
Q205: The tragedy of the commons occurs because
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents