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Suppose that we are considering preserving a 4-mile stretch of river and that the benefits and costs of that action are reflected in the figure below. Should that stretch be preserved? 

The following figure shows the market for steel. The demand curve D crosses the private marginal cost of producing the steel (MCp) at Qm, Pm, and it crosses the social marginal cost function (MCs) at point Q*, P*. Why is there market failure at the private market equilibrium?

What is the main difference between static and dynamic efficiency?

Which is an example of environmental sustainability?

Which label indicates the marginal cost curve?

Assume that we have a fixed supply of a depletable resource to allocate between two periods. The inverse demand function for the depletable resource is the same in each of the two periods, given as P = 8 – 0.4q, and the marginal cost of supplying it is $2. If 30 units are to be allocated between two periods, in a dynamic efficient allocation, how much would be allocated to the second period when the discount rate is zero?

Use the equations given below to calculate marginal benefit and marginal cost, then use that to find the optimal value for X. TB = 314X – 1.6X2 TC = 50X + 1.7X2

An allocation of resources is said to satisfy the static efficiency criterion if the ________ from the use of those resources is maximized by that allocation.

Economists have decomposed the total economic value conferred by resources into three main components: (1) use value, (2) option value, and (3) nonuse or passive-use values. Which is NOT an example of use value?

Suppose that hedonic wage studies indicate a willingness to pay $50 per person for a reduction in the risk of a premature death from an environmental hazard of 1/100,000. If the exposed population is 4 million people, what is the total willingess to pay? (answer in million dollars)