Home » Nuriye owns 6 barrels of toxic waste.

Nuriye owns 6 barrels of toxic waste.

Nuriye owns 6 barrels of toxic waste. She can store the barrels underground or in her yard, but storing them underground is more expensive, so Nuriye’s storage cost is 3(6 − B)^2 dollars if she stores B barrels in her yard. However, while burying the barrels underground is entirely safe, they leak if they are stored above ground (in her yard), which damages the tomatoes grown by her neighbor, Taylan. Taylan sells his tomatoes at the competitive price of pT = 24 and his costs of producing T tomatoes is CT (T, B) = (T + B) 2 , where B is the number of barrels in Nuriye’s yard.

(a) If Nuriye and Taylan each choose individually, how many barrels, B, does she keep in her yard and how many tomatoes, T, does Taylan grow? (

b) If Nuriye and Taylan are the only people that matter, what is the socially optimal values of B and T?

(c) Suppose Taylan is given the right to clean soil and he requires Nuriye to pay him for every barrel she wishes to store above ground. Assuming Taylan and Nuriye can negotiate without cost, what are the equilibrium values of B and T, and what is the price that Nuriye must pay Taylan for each barrel she stores in her yard?

(d) Because Taylan’s right to clean soil means that Nuriye must pay him so much to store barrels in her yard, Nuriye invests in finding a cheaper way to store barrels underground, so that her cost function is now 2(6 − B) 2 . Find the new equilibrium B and T, as well as the price Nuriye will pay Taylan per barrel.

(e) Briefly Explain how the assignment of property rights gives Nuriye the incentive to innovate new, cleaner technologies. To receive full credit, calculate how much money Nuriye saves from innovating both when Taylan has the right to clean soil and when no property rights are assigned (and compare the two figures).

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.