Question: Consider an economy with three types of individuals differing only
Consider an economy with three types of individuals, differing only with respect to their preferences for monuments. Individuals of the first type get a fixed benefit of 100 from the mere existence of monuments, whatever their number. Individuals of the second and third type get benefits according to BII = 200 + 30M – 1.5M2 and BIII = 150 +90M – 4.5M2, where Mdenotes the number of monuments in the city. Assume that there are 50 people of each type. Monuments cost $3,600 each to build. How many monuments should be built?
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