Taman and Jane Finance Assingment Help With Solution
Taman and Jane live alone in the jungle and have trained Cheetah both to patrol the perimeter of their clearing and to harvest tropical fruits. Cheetah can collect 3 pounds of fruit an hour and currently spends 6 hours patrolling. 8 hours picking, and 10 hours sleeping.
a. What are the public and private goods in this example?
b. If Taman and Jane are each currently willing to give up one hour of patrol for 2 pounds of fruit, is the currentallocation of Cheetah's time Pareto efficient? Should he patrol more or less?
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Indicate whether each of the following statements is true, false, or uncertain, and justify your answer.
a. Efficient provision of a public good occurs at the level at which each member of society places the same value on the last unit.
b. If a good is nonrival and excludable, it will never be produced by the private sector.
c A road is nonrival because one person's use of it does not reduce another person's use of it.
d. Larger communities tend to consume greater quantities of a nonrival good than smaller communities.
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