On the basis of the three individual demand schedules below, and assuming these three people are the only ones in the society, determine (a) the market demand schedule on the assumption that the good is a private good and (b) the collective demand schedule on the assumption that the good is a public good. Individual #1 Individual #2 Individual #3 Demand Curve- Public Good
Price Qd Price Qd Price Qd Amount Society is Willing to Pay Qd
$16 0 $16 1 $16 1 $ 1
14 1 14 2 14 2 2
12 2 12 3 12 3 3
10 3 10 4 10 4 4
8 4 8 5 8 5 5
6 5 6 6 6 6 6
4 6 4 7 4 7 7
2 7 2 8 2 8 8

Use this public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good.

Martinez manufacturing applies overhead based on direct labor hours. the company estimates that their overhead for the year will be $180,000, and that they will use 72,000 direct labor hours. during the year, martinez manufacturing actually used 75,000 direct labor hours and actual overhead costs were $190,000. at the end of the year, manufacturing overhead was: overapplied by $2,500. overapplied by $10,000. underapplied by $2,500. underapplied by $10,000.

Richardson hired j.c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j.c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."

Why do police officers get paid less than professional baseball players?