Q Question 1 1 / 1 pts Highway engineers want to improve a dangerous stretch of highway. They expect that it will reduce the risk of someone dying in an accident from 4.1 percent to 1.5 percent over the life of the highway. If a human life is worth $4.2 million, then the project is worth doing as long as it does not cost more than Question 2 1 / 1 pts Table 11-2 Consider a small town with only three families, the Johnson family, the Marshall family, and the Walker family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family’s willingness to pay for each streetlight. Number of Streetlights The Johnson Family The Marshall Family The Walker Family 1 $170 $240 $210 2 130 190 200 3 80 130 170 4 20 65 120 5 0 25 50 6 0 0 10 Refer to Table 11-2. Suppose the cost to install each streetlight is $180 and the families have agreed to split the cost of installing the streetlights equally. To maximize their own surplus, how many streetlights would the Johnson’s like the town to install? Question 3 1 / 1 pts Table 11-1 Consider the town of Anywhere with only three residents, Mary, Bill, and Tricia. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident’s willingness to pay for each acre of the park. Acres Mary Bill Tricia 1 $14 $18 $30 2 10 14 26 3 6 10 22 4 4 6 18 5 2 3 14 6 0 1 10 7 0 0 6 Refer to Table 11-1. Suppose the cost to build the park is $33 per acre and that the residents have agreed to split the cost of building the park equally. If the residents decide to build a park with size equal to the number of acres that maximizes total surplus from the park, how much total surplus will Bill receive? Question 4 1 / 1 pts Table 11-2 Consider a small town with only three families, the Johnson family, the Marshall family, and the Walker family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family’s willingness to pay for each streetlight. Number of Streetlights The Johnson Family The Marshall Family The Walker Family 1 $170 $240 $210 2 130 190 200 3 80 130 170 4 20 65 120 5 0 25 50 6 0 0 10 Refer to Table 11-2. Suppose the cost to install each streetlight is $180 and the families have agreed to split the cost of the streetlights equally. If the families vote to determine the number of streetlights to install, basing their decision solely on their own willingness to pay (and trying to maximize their own surplus), what is the greatest number of streetlights for which the majority of families would vote “yes?” Question 5 1 / 1 pts Table 11-2 Consider a small town with only three families, the Johnson family, the Marshall family, and the Walker family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family’s willingness to pay for each streetlight. Number of Streetlights The Johnson Family The Marshall Family The Walker Family 1 $170 $240 $210 2 130 190 200 3 80 130 170 4 20 65 120 5 0 25 50 6 0 0 10 Refer to Table 11-2. Suppose the cost to install each streetlight is $450. How many streetlights should the town install to maximize total surplus from the streetlights?

View Related Questions