Suppose a gated housing community includes 150 identical households. It is costly to maintain the roads in the gated community. Suppose each household has a marginal benefit ?? = 200 ? 25? for each mile of road maintained. The total cost of maintaining roads is given by ? = 20000? (MC=20000).i. If the residents have to pay individually to maintain the roads in the vicinity of their property, how many miles of roads will each household choose to maintain on their own?j. How many miles of roads should be maintained for the community considering the public good nature of roads?k. Suppose the community association could charge a flat fee to the households to fund the maintenance of the roads. How much should this fee be per household and what is the total cost of maintaining the socially efficient level of this public good?l. Draw the individual marginal benefit curves, overall marginal benefit and the marginal cost curve. Identify and calculate the net social benefit of the public good.

12. Suppose a gated housing community includes 150 identical households. It is costly to maintain the roads in the gated community. Suppose each household has a marginal benefit MB = 200 - 25M for each mile of road maintained. The total cost of maintaining roads is given by C = 20000M (MC=20000). i. If the residents have to pay individually to maintain the roads in the vicinity of their property, how many miles of roads will each household choose to maintain on their own? j. How many miles of roads should be maintained for the community considering the public good nature of roads? k. Suppose the community association could charge a flat fee to the households to fund the maintenance of the roads. How much should this fee be per household and what is the total cost of maintaining the socially efficient level of this public good? 1. Draw the individual marginal benefit curves, overall marginal benefit and the marginal cost curve. Identify and calculate the net social benefit of the public good