1. Suppose the state is trying to decide how many miles of a very scenic river it should preserve. There are 100 people in the community, each of whom has an identical inverse demand function given by p = 10 – q, where q is the number of miles preserved and p is the per mile price he or she is willing to pay for q miles of preserved river.
(a) If the marginal cost of preservation is $500 per miles, how many miles would be preserved in an efficient allocation?
(b) How large are the net benefits?
2. Electric car or “hybrid” car is considered a clean alternative to car powered by internal combustion engine (gasoline or diesel). Tesla company (https://www.tesla.com/ ) is in the forefront of making electric car. The cleanness of electric car is based on the exhausting pipe of the car. A gasoline car emit CO2 but an electric car does not.
Model 3 is the newest Tesla electric car in the market. Please go online to obtain energy efficiency information on Model 3 and a comparable Toyota car. Then conduct the following assessment: if the electricity supply of Model 3 entirely comes from a coal-powered electricity generator, which car is cleaner in terms of CO2 emission?
Please should your source and your work before presenting the conclusions.
3. The Keystone XL pipeline is a proposed petroleum pipeline connecting Canada and the United States. This is a controversial project and was put on hold by the Obama Administration and proved by the Trump Administration. Please go online to learn the background and the issues surrounding this project.
Based on the information gathered, please conduct cost-benefit analysis of this project. Based on your assessment, the Keystone XL should be constructed or not? What are the “social benefit” and “social cost” of this project, if constructed?
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