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Erika just moved into a share-house with 3 friends, and they want to throw a housewarming party complete with a local DJ named Lil Pareto.
Erika just moved into a share-house with 3 friends, and they want to throw a housewarming party complete with a local DJ named Lil Pareto. All of them love this DJ's sick beats, but they can't agree how long his set should be. Erika's demand for minutes of music is given by P = 50 - 0.8Q, with all of her friends having identical demand curves as Erika. Lil Pareto charges $14 per minute. If the friends can't come to an agreement on how long to book the DJ, forcing them to choose individually, how many fewer minutes will they buy compared to the social optimum
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