The demand curve for a public park for two consumers who represent society is given by: P

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The demand curve for a public park for two consumers who represent society is given by:

P = 150

− Q and P = 250

− Q Graph the two demand curves and show the marginal social benefit curve for this public park. If the marginal cost of providing the park was €240, what would the optimum provision of this park be? Explain why any quantity above or below this amount would represent a less than efficient allocation.

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Economics

ISBN: 9781408093795

3rd Edition

Authors: Mark P. Taylor, N. Gregory Mankiw

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