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Need help understanding how to answer these questions with a graph and explanation 3. Ten identical consumers all have individual willingness- to-pay curves P =
Need help understanding how to answer these questions with a graph and explanation
3. Ten identical consumers all have individual willingness- to-pay curves P = 5 zl_oQ for a public goodsay, local parks (where P 1s measured in hundreds of dollars and Q 1s measured 1n acres). Construct and graph the aggregate willingness-to-pay curve. For 50 acres of parks, what is the maximum each individual would be willing to pay? (LO2) 4. Consider the scenario described 1in Problem 3, but now consider that the marginal cost of providing parks mea- sured in hundreds of dollars is MC = %Q. Determine the optimal size of local parks. (LO2)Step by Step Solution
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