The city council divides a community's residents into three groups: individual young adults, families with children, and older adults. The following table summarizes how much each group is willing to pay for each playground Amount Groups Are Willing to Pay for Each Playground Individual Young Adults Number of Playgrounds 1 2 Families with Children Older Adults $400 $2,000 $1,000 $300 $1,800 $900 3 $200 $1,600 $800 4 $100 $1,400 $700 5 $0 $1,200 $600 6 $0 $1,000 $500 7 8 $0 $0 $900 $400 $800 $300 The city council must pay $2,250 to build each playground. Which of the following is a characteristic of playgrounds and what is the optimal number of playgrounds for the township to build? A Playgrounds are nonrival in consumption, and the optimal number of playgrounds is zero. Playgrounds are nonrival in consumption, and the optimal number of playgrounds is two. D Playgrounds are rival in consumption, and the optimal number of playgrounds is three. Playgrounds are nonexcludable, and the optimal number of playgrounds is zero. E Playgrounds are excludable in consumption, and the optimal number of playgrounds is two.

The city council divides a community's residents into three groups: individual young adults, families with children, and older adults. The following table summarizes how much each group is willing to pay for each playground Amount Groups Are Willing to Pay for Each Playground Individual Young Adults Number of Playgrounds 1 2 Families with Children Older Adults $400 $2,000 $1,000 $300 $1,800 $900 3 $200 $1,600 $800 4 $100 $1,400 $700 5 $0 $1,200 $600 6 $0 $1,000 $500 7 8 $0 $0 $900 $400 $800 $300 The city council must pay $2,250 to build each playground. Which of the following is a characteristic of playgrounds and what is the optimal number of playgrounds for the township to build? A Playgrounds are nonrival in consumption, and the optimal number of playgrounds is zero. Playgrounds are nonrival in consumption, and the optimal number of playgrounds is two. D Playgrounds are rival in consumption, and the optimal number of playgrounds is three. Playgrounds are nonexcludable, and the optimal number of playgrounds is zero. E Playgrounds are excludable in consumption, and the optimal number of playgrounds is two.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...

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