Just North of the Town of Muskrat, Ontario, Is the Town

question 7

Multiple Choice

Just north of the town of Muskrat, Ontario, is the town of Brass Monkey, population 700.Brass Monkey, like Muskrat, has a single public good, the town skating rink and a single private good, Labatt Ale.Everyone's utility function is U_i(X_i, Y) = X_i - 144/Y, where X_i is the number of bottles of ale consumed by i and Y is the size of the skating rink in square meters.The price of ale is $1 per bottle.The cost of the skating rink to the city is $7 per square meter.Everyone has an income of at least $5,000.What is the Pareto efficient size for the town skating rink?

• A)120 square meters
• B)245 square meters.
• C)240 square meters.
• D)120 square meters.
• E)None of the above.

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Definitions:

Lanoxin Pediatric Elixir

A liquid form of the medication digoxin, used to treat heart failure and heart rhythm problems in children.

Loading Dose

An initial higher dose of a drug to quickly achieve a therapeutic level in the body.

Maintenance Dose

The dose of medication needed to maintain a desired level of the drug in the bloodstream after the initial therapeutic effect is achieved.

Heart Failure

A chronic condition where the heart is unable to pump sufficiently to maintain blood flow to meet the body’s needs.