"Discussion Questions" Number 11

question 18

Essay

"Discussion Questions" number 11
Suppose that there are only two fishermen,Zach and Jacob, who fish along a certain coast. They would each benefit if lighthouses were built along the coast where they fish. The marginal cost of building each additional lighthouse is $100. The marginal benefit to Zach of each additional lighthouse is 90 − Q , and the marginal benefit to Jacob is 40 − Q, where Q equals the number of lighthouses.
a. Explain why we might not expect to find the efficient number of lighthouses along this coast.
b. What is the efficient number of lighthouses? What would be the net benefits to Zach and Jacob if the efficient number were provided?
-Refer to "Discussion Questions" number 11 .How does your answer change if the marginal cost of building each additional lighthouse increases to $150?

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Definitions:

Neural Inhibition

A process in the nervous system where certain neurons suppress the activity of other neurons, helping to control and refine neural circuits.

Sympathetic Activity

Part of the autonomic nervous system that prepares the body for 'fight or flight' response by increasing heart rate, constricting blood vessels, and raising blood pressure.

Iodine Deficiency

A lack of iodine in the body, leading to thyroid problems, including goiter and intellectual disabilities in severe cases.

TSH

Thyroid-Stimulating Hormone, a hormone produced by the pituitary gland that regulates the production of hormones by the thyroid gland.