Suppose there are three equalsize groups in the economy with the following demand curves: Group 1's demand for police protection is P: 7010 Q Group
Suppose there are three equalsize groups in the economy with the following demand curves: Group 1's demand for police protection is P: 7010 Q Group 2's demand for police protection is P=50-10 0 Group 3's demand for police protection is P=4410 Q where 0 refers to the quantity of police protection (i.e. number of police officers) and P refers to the price. Assume that each group includes 3,000 people and that the social marginal cost is $40,000. If the people in groups 1 and 2 are free-riders, how many police officers will the private sector provide
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