3 A number of visitors to a recreational park and the travel

3. A number of visitors to a recreational park and the travel cost are illustrated in the table below: Travel cost Population Init visitors visit rate,S fee Initia Cost with New iNew rate $2 $3 $4 $5 50,000 25,000 12,500 6,250 1,000 375 125 0 4.000 Total a. Calculate the number of visitors if a 1$ admission fee were charged b. Calculate consumer surplus and recreational value at the initial admission fee (Hint c. Calculate consumer surplus and recreational valuc at the increased admission fee (Hint: recreation value = consumer surplus). recreation value consumer surplus). Demand curve function is illustrated on figure and is expressed by the equation: 4,000 Q 4. There are MAC and MD curves FIGURE 5.6 The Efficient Level of Emissions MD Emissions (tons/year) a. Identify socially efficient level of pollution b. Describe the following areas: i. Area a i. Areab iii. Area (a+b) Due to highly-costly policy, the level of emissions has changed from e* to e\'. Use area- letters to describe and identify changes occurred in c. i. Total damage cost ii. Total abatement cost iii. Total social cost

Solution

Can answer only four parts according to chegg policy. Please send other parts as separate question. I will answer 4 parts of question 4

1.Socially efficient level of pollution is e*

2 a is total demage cost at socially efficient level of pollution

3 area B is marginal control cost of decreasing emission to e* level

4 a+B is total social cost