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