Question 2- NON-EXCLUDABLE PUBLIC GOOD You live in a community house of ten people. This problem is about how clean the house should or will be kept. 6 of your colleagues are low-demanders for cleanliness and each has a private marginal benefit from a unit of cleanliness which is approximated by: PMB = 0.9 0.04 Z (\$ per unit of cleanliness) where Z is the units of cleanliness. 4 of your colleagues (including you) are high-demanders for cleanliness and each has a private marginal benefit from a unit of cleanliness which is approximated by: PMB = 1.75 0.02 Z (\$ per unit of cleanliness). Cleanliness can only be obtained by having a cleaner. A cleaner produces 2 (units of cleanliness per hour) and charges 12 (\$ per hour). e) If cleaning is provided at the efficiect level and the cast is shared by the Benefit Principle, how much better off is each person? That is, the high and low demander. It may be helpful to graph thic. Q If cleaning is provided at the efficient level and the cost is shared equally, how much better off is each person? That is, the high and low demander. It may be helpful to graph this. Hint: There is no reason for PMBAPMC at the efficient level of cleaning. g) You have a ever-so- sightly higher PMA than your colleagues. A house meeting is held which decides that the cleaner must be hired privately, How dean will the house be kept and how many hours wil the cleaner work? PMB = 0.9 0.042 ( $ per unit of cleanliness) where Z is the units of cleanliness. 4 of your colleagues (including you) are high-demanders for cleanliness and each has a private marginal benefit from a unit of cleanliness which is approximated by: PMB = 1.75 0.02 Z (s per unit of cleanliness). Cleanliness can only be obtained by having a cleaner. A deaner produces 2 (units of cleanliness per hour) and charges 12 (S per hour). a) is house cleanliness a public or private good? b) What would you mean if you said that your private marginal benefit was 1 is per unit of cleanliness)? c) From an efficiency viewpoint, how many hours should the cleaser be hired? d) If cleaning is provided at the efticient level and the cost is shared by the Benefit Principle, how much does each person pay? That is, the high and low demander. it may be helpful to graph this..

1. Question: Can he? 5. Farley's Last Problem has perplexed mathematicians for decades. Before
she retired from mathematics and disappeared, Farley wrote on the back of an envelope a
challenge to prove a long-standing conjecture, together with some enigmatic hints. Although
thousands tried, no one else proved the truth of the conjecture, before or after that time. Finally,
after years of work in her attic, Trig sets forth an iron-clad proof of the conjecture. Question: Can
Trig patent her proof? 6. Ponce, a gerontologist, figures out how to genetically engineer humans
to produce a human whose altered immune system adds years to the average lifespan. Ponce files
his patent application on a "Longer Living Human Being." Questions: Is his invention within
patentable subject matter? What if it were instead a longer-living guinea pig? 7. To fall within
the subject matter of patents, an invention must be a process or product, not be excluded as an
unpatentable law of nature, physical phenomenon, or abstract idea. Which of the following fall
within the subject matter of patents? - Astronomer, after studying reams of data from satellites,
determines there is a large, unknown deposit of oil under Syracuse, N.Y. - Driller devises a new
method of extracting oil from under a city without disturbing the residents. - In developing her
new method, Driller finds that drill bits she makes out of titanium are the most effective.
Titanium is a naturally occurring substance but has never been used for drill bits before. -
Biologist, trekking in the Rocky Mountains, encounters the Yodo bird, a species of bird never
before recorded. - Miner, while digging for gold in the Rockies, comes across a large deposit of a
new mineral, kabloondium.