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I. Town A is considering building a public swimming pool for which the annualized capital cost is $150,000 and MC = $0. If the pool
I. Town A is considering building a public swimming pool for which the annualized capital cost is $150,000 and MC = $0. If the pool is built, admission will be free to anyone living in the town. The table shows the available information. Town Cost Price Visits Revenue A $150,000 $0 ? $0 B $150,000 $0 300,000 $0 C $150,000 $2 100,000 $200000 A. Derive the estimated demand curve for town A's pool. B. What is the net social benefit of: 1. Town A's pool? 2. Town C's pool? C. If MC = $2, what is the net social benefit of: 1. Town A's pool? 1. Town C's pool
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