The accompanying table shows Tanishas and Aris individual marginal benefit of different amounts of street cleanings per
Question:
The accompanying table shows Tanisha’s and Ari’s individual marginal benefit of different amounts of street cleanings per month. Suppose that the marginal cost of street cleanings is constant at $9 each. Quantity of Tanisha’s street cleanings individual Ari's individual ermonth marginal benefit_marginal benefit,
$8
a. If Tanisha had to pay for street cleaning on her own, how many street cleanings would there be?
b. Calculate the marginal social benefit of street cleaning. What is the optimal number of street cleanings?
c. Consider the optimal number of street cleanings. The last street cleaning of the optimal number of street cleanings costs $9. Is Tanisha willing to pay for that last cleaning on her own? Is Ari willing to pay for that last cleaning on his own?
Step by Step Answer:
