Question
Suppose that 10 people live on a street and that each of them is willing to pay $2 for each extra streetlight, regardless of the
Suppose that 10 people live on a street and that each of them is willing to pay $2 for each extra streetlight, regardless of the number of streetlights provided. If the cost of providing g streetlights is given byc(g)=g^2, what is the Pareto efficient(optimal) number of streetlights to provide? (Hint: marginal cost of streetlight is2g).
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Using R For Econometrics
Authors: Florian Heiss
1st Edition
1523285133, 9781523285136
