for a. Write the social marginal benefit equation: MBS = Type integers. b. The socially optimal number of street lights is places. Hint: Type the number in two decimal

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
Section: Chapter Questions
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QUESTION 5
Suppose 20 people each have the demand Q = 20-P for streetlights and 5 people have the demand Q = 18-2P
for streetlights. The cost of building each streetlight is $10.
a. Write the social marginal benefit equation: MBS =
Type integers.
b. The socially optimal number of street lights is
places.
Q/2. Hint
Hint: Type the number in two decimal
socum
Transcribed Image Text:QUESTION 5 Suppose 20 people each have the demand Q = 20-P for streetlights and 5 people have the demand Q = 18-2P for streetlights. The cost of building each streetlight is $10. a. Write the social marginal benefit equation: MBS = Type integers. b. The socially optimal number of street lights is places. Q/2. Hint Hint: Type the number in two decimal socum
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