What is the problem with determining the value of a public good to society?

What is the problem with determining the value of tolls on a highway or bridge? It is a public good... but we pay for it. Right?

Microeconomics

OK. So - you are elected President and you need to estimate the value of... let's say... Homeland Security. No one argues whether we need to protect our country from attack (no one rational anyway). So how can you attach a value to it? What are your ideas? 2) What is the problem with determining the value of a public good to society? This is how I answered this question. The nature of public goods is such that it is difficult to determine a value for them. Because public goods are non-rival and non-excludable, the use of the market to determine the value of the product would lead to lead to an under-supply as individuals act to advance their personal interests. The preser... click for more

Microeconomics

This is how I answered this question. What are the differences among horizontal, vertical, and conglomerate mergers? Is one type preferable from the view of anti-trust policy? A horizontal merger occurs when firms selling substitutable goods within the same geographical market or overlapping geographical markets joins together to form one company. An example of this would be a merger between Staples and Office Depot. In a vertical merger, firms maintaining or firms that could have maintained a buyer-seller relationship joins together to form one company. An example of this would be a merger between Kentucky Fried Chicken and Perdue Farms, where Kentucky Fried Chicken is the ... click for more

Productivity and Price Elasticity of Demand

Can you please tell me where I could get information on Starbucks in regards to economic forecasts as to the economic conditions. · Productivity · Price elasticity of demand

Demand Chart

The graph below represents the monthly demand for a specialized laser-cutting tool. Assume that there is only 1 firm in the world that manufactures this laser tool. Its marginal and average cost curves are shown. Answer the questions below based on this information. a)Draw the firm's marginal revenue schedule. b)What is the price that leads to the highest level of profits for this firm? c)Show the area on the graph that represents the above normal profits earned at the profit maximizing price output combination. d)Is this market a "natural monopoly?" Explain you answer. e)Is the minimum efficient scale of production large relative to the market, absolutely large or both relati... click for more