Suppose a Firm Has 10 Employees,all of Whom Desire a More

question 108

Essay

Suppose a firm has 10 employees,all of whom desire a more pleasant work environment.Accordingly,they are considering removing litter from the grounds of the plant.Each employee has an inverse demand for "clean grounds" of P = 100 - 2Q,where Q is the number of empty beer cans removed from the premises.The marginal cost of removing beer cans is $1 per can.
a.What is the socially efficient quantity of cans to remove?
b.How much would each person have to pay per can to remove the socially efficient quantity?

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Definitions:

Volley Principle

A theory explaining how auditory neurons work together to convert high-frequency sound waves into electrical signals by firing in rapid succession.

Frequency Theory

A theory regarding how sounds are perceived, suggesting that the frequency of an auditory stimulus is directly related to the frequency of neural impulses sent to the brain.

Neurons

The fundamental units of the brain and nervous system, responsible for receiving sensory input, sending motor commands to muscles, and processing and transmitting neural impulses throughout the body.

Middle Ear

The part of the ear between the eardrum and the oval window that contains the three small bones (ossicles) involved in transmitting sound to the inner ear.