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Question 6 Talia has a small house on the beach, and she is considering expanding the home by adding rcomy The following table shows
Question 6 Talia has a small house on the beach, and she is considering expanding the home by adding rcomy The following table shows the private value and private ccsts of building additonal rooms to her home: 4 rooms 3 rooms 7 rooms 5 rooms Muing to Qua ntity Pri vate $750 Private Cost 5475 5575 Each additional room that Talia builds further blocks her neighbors: views of the ocean, so that each additional room impcses a S175 negative externality on her neighbors. Thus, the privately optimal number of nyoms to build is but the sc:cially optimal number of rooms to build is o o o o o I room ; O rooms S rooms 3 rooms S rooms 4 rooms another uestion
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