西财作业英文版附答案.docVIP

第五章 外部性P100 2. In the following figure, the number of parties that Cassanova gives per month is measured on the horizontal axis, and dollars are measured on the vertical. MCp is the marginal cost of providing parties and MBp is Cassanova’s marginal benefit schedule from having parties. a. Graphically, show how many parties Cassanova will host. b. Suppose there is a fixed marginal external benefit, $b, per party to Cassanova’s friends. Illustrate this on your graph. c. What is the socially (no pun intended) optimal level of parties? How could the Social Committee induce Cassanova to throw this number? d. On your graph, show the optimal subsidy per party and the total amount paid to Cassanova. Who gains and loses under this plan? 答案： 2. The number of parties per month that would be provided privately is P. See schedule MSBp. P*. Give a per-unit subsidy of $b per party. The total subsidy=abcd. “Society” comes out ahead by ghc, assuming the subsidy can be raised without any efficiency costs. (Cassanova’s friends gain gchd; Cassanova loses chd but gains abcd, which is a subsidy cost to government.) 7. The Finger Lakes region of New York State attracts tourists who wish to sample its superb wines. In recent years, hog-raising farms—some with more than a thousand hogs—have taken root in the region. The smells emanating from the massive amounts of pig manure adversely affect the tourism. “Wine and swine, in other words, do not mix” [Chen, 2001, p. L1]. Imagine that the Little Pigs (LP) hog farm is situated near the Tipsy vineyard. The following table shows, for each level of LP’s output, the marginal cost of a hog, the marginal benefit to LP, and the marginal damage done to Tipsy: a. How many hogs does LP produce? b. What is the efficient number of hogs? c. The owner of LP gets tired of Tipsy’s complaints about her hog farm, and she buys out Tipsy. After the merger, how many hogs does LP produce? d. How does the merger affect the sum of the profits earned by LP