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Chapter 31: Q. 9 (page 708)

The following table displays hypothetical annual total costs and total benefits of conserving wild tigers at several possible worldwide tiger population levels.

a. Calculate the marginal costs and benefits.

b. Given the data, what is the socially optimal world population of wild tigers?

c. Suppose that tiger farming is legalized and that this has the effect of reducing the marginal cost of tiger conservation by $15million for each 2,000-tiger population increment in the table. What is the new socially optimal population of wild tigers?

Short Answer

Expert verified

(a) The marginal costs and benefits is 8000.

(b) The socially optimal world population of wild tigers is 8000.

(c) The new socially optimal population of wild tigers 10000tigers.

Step by step solution

01

Introduction

Trying to market, endorsement, branding, teacher qualifications, commodity public affairs, interactions of influencers but rather trade associations, customer surveys, public health care macroeconomic experiments, and certain other similar tasks strictly relevant to or accepted by that of the Integrated Business expansion Working group, that heaviness on living costs has been lightened.

02

Explanation(a)

a. A table below provides that incremental cost benefit with wild tiger restoration equations:

03

Marginal cost Equals Benefit (a)

Determine that we've been possible to accomplish greatest success for one mixed racial organization, given

04

Explanation (b)

b. Its equilibrium point will be where the cost and total gain both comparable. It's what transpires once the potential reward and investment remain comparable 8000tigers.

So when potential profit nor expense are equal to $25, which occur every 8000tigers.

05

Explanation (c)

Is if expense of 2000tigers drops by $15million, its unit benefit per 2000tigers decreases by $15million. Is how a redesigned pattern could emerge:

That can be the new perfect posture10000tigers.

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