Public Goods Espolla is a small village with only three households. Each of these households has requested the local government to install streetlights. The local government conducts a survey and finds that the private marginal benefit of streetlamps for each household is as follows: Householdlevel Marginal Benet (CAD per streetlamp) Quantity Household (Streetlamps) Gonzalez __ 1 [in 450 3 350 4 325 s 300 _ 2 The following 5 questions refer to the above table. Question 1 (1 point) What is the marginal social benefit of going from one to two streetlamps? 0 None of the above Question 2 (1 point) Suppose the marginal cost of installing streetlights is constant at 700 CAD. What is the efficient quantity of streetlamps? (Assume the marginal social cost is equal to the marginal private cost.) Question 3 (1 point) Suppose the local government refuses to buy streetlamps. How many streetlamps would be privately bought at a marginal cost of 700 CAD? (Assume the marginal social cost is equal to the marginal private cost.) Question 4 (1 point) If the local government refuses to buy streetlamps and the MC falls from 700 to 490, what is the highest number of streetlamps that would be bought privately? (Assume the marginal social cost is equal to the marginal private cost.) Question 5 (1 point) Which of the following statements about the provision of streetlamps in Espolla are true? (Select all that apply) 0 At a marginal cost of 490 CAD, if the local government provides one streetlamp, only one household is willing to buy a second C] At a marginal cost of 450 CAD, if the local government provides one streetlamp, only one household is willing to buy a second C] At a marginal cost of 600 CAD, if the local government provides one streetlamp, only one household is willing to buy the second C] None of the above