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9 problems; public and private goods in economics, please answer as soon as you can, thanks!! Part 2- Practice: The city of Cliffordville is trying

9 problems; public and private goods in economics, please answer as soon as you can, thanks!!

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Part 2- Practice: The city of Cliffordville is trying to determine how many public parks it would like to build. The city is divided into the East side and the West side. The table below shows the taxes that citizens on the East side and the West side are willing to pay for different quantities of parks. Public East Side West Side Cliffordville Parks Willingness Willingness Demand $105 to Pay to Pay (MSB) $95 $55 $50 $85 2 $50 $45 $75 3 $45 540 4 $40 $35 $65 5 $35 $30 $55 6 $30 $25 $45 7 $25 $20 $35 8 $20 $15 $25 $15 3. Fill in the chart and calculate the marginal $5 social benefit (MSB) for all the citizens in Cliffordville. 4. Graph the MSB and marginal social cost (MSC) for Cliffordville assuming that each park costs $50. 5. What rule should Cliffordville use to determine how many parks to build? 6. How many parks should the citizens of Cliffordville build if they received no money from the West side? 7. How many parks should the citizens of Cliffordville build? How did you get your answer? Micro Problem Set 6-Part 1 Name: Period: 8. Use the data in the table above to explain why Cliffordville should never produce a total of eight public parks 9. How many parks should the citizens of Cliffordville build if each park costs $90 to build

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