5 Rivalry and exclusion 5.1 What are the four types of goods when categorized based on rivalry and exclusion? 5.2 What is one example of each type of good? Please explain why. 5.3 For each type of good, how might the government regulate markets for such goods to ensure the socially optimal level is produced and consumed?I 6 Public goods Three families live at the end of a road outside town. They must pay to install street- lights. Streetlights are a public good for these households-that is if one household buys a a streetlight, all households will get access to the streetlight. Assume family 1 has an inverse demand for streetlights of p = 200 - Q, family 2 has an inverse demand for streetlights of p = 400 - Q, and family 3 has an inverse demand for streetlights of p = 600 - Q. Assume the supply of streetlights is horizontal at the marginal cost of $400. 6.1 Assuming the families act independently, find the quantity of streetlights each family will demand. What will be the total amount of streetlights provided? 6.2 Now find the socially optimal quantity of streetlights for these three families. 6.3 Please draw this market, including all three demand curves, the supply curve, and the social demand curve. Indicate the social optimum. 6.4 What is one way that the households could achieve the socially optimal quantity of streetlights? 6.5 Explain how this problem illustrates the problem of public goods and free riding.7 Bonus If your first first name begins with A-M, give an example of a real-life market that you believe is best modeled as a Bertrand oligopoly without differentiated products. Explain why in 2-3 sentences. If your first first name begins with N-Z, give an example of a real-life market that you believe is best modeled as a Stackelberg oligopoly. Explain why in 2-3 sentences