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Thelma and Louise are neighbors. During the winter, it is impossible for a snowplow to clear the street in front of Thelma's house without clearing
Thelma and Louise are neighbors. During the winter, it is impossible for a snowplow to clear the street in front of Thelma's house without clearing the front of Louise's. Thelma's marginal benefit from snow plowing services is 50 57, where Z is the number of times the street is plowed. Louise's marginal benefit is 30 32. The (constant) marginal cost of getting the street plowed is RM32. Sketch the aggregate marginal benefit curve and the marginal cost curve, calculate the efficient number of plows, and identify the efficient point in your graph. Aggregate MB How much money (total) would the government need to collect from Thelma and Louise to fully finance the efficient number of plows? What do you think is the most effective way of deciding how much each must pay? Z
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