The 130 campers at Bear Creek Campground love their own campfires but hate the smoke from their neighbors' campfires.Each camper's utility function is U = 22f - f 2 - s, where f is the number of hours her own campfire burns per day and where s is the amount of smoke in the air.It happens that s is 10 times the average amount of hours that campers use their fires.The campground authority could make all campers better off by limiting the number of hours of campfire per day for everyone.How many hours of campfire per day should the authority allow each camper in order to make the typical camper as well off as possible?
A) 6
B) 11
C) 4
D) 7
E) Campers will be best off if they are free to choose their own amounts of campfire.
Correct Answer:
Verified
Q1: If there are negative externalities in production
Q2: If your consumption of toothpaste produces positive
Q4: The only known way to eliminate externalities
Q5: A mountain village owns a common pasture
Q6: The efficient amount of air pollution is
Q7: Two stores are located side by side.They
Q8: Two stores are located side by side.They
Q9: Firm 1 produces output x with a
Q10: The "tragedy of the commons" refers to
Q11: Two stores are located side by side.They
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