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(B) Suppose the marginal cost of fireworks is $27. (i) How many fireworks should Smalltown buy? Denote this quantity Q, and indicate it on the

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(B) Suppose the marginal cost of fireworks is $27. (i) How many fireworks should Smalltown buy? Denote this quantity Q", and indicate it on the graph in (A). (ii) What is the total cost of the fireworks? (iii) For each citizen, calculate the total benefit from the firework display. ( The easiest way to do this is to calculate average WTP and then multiply by Q", Le. WIPO+WTPQ2 x Q-.) (iv) Smalltown proposes that each citizen pay , of the total cost. If Angus, Bill, and Charlene vote on this proposal, will it pass? ( That is, will at least 2 of them vote 'yes'?)Public goods. The government of Smalltown is deciding how many fireworks to buy for the annual 4th of July celebration. The three citizens of Smalltown - Angus, Bill, and Charlene - have the following willingness-to-pay for fireworks: WTPA(Q) = 10 - 2Q WTP#(Q) = 30 - 6Q WTP" (Q) =5-Q (A) Let's consider the social benefit from fireworks. (i) Use the individual citizens' WTP curves to calculate Smalltown's marginal social benefit curve. (ii) On the same graph, draw the WTP curves for the three citizens, along with the MSB curve you calculated in (i)

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