The demand curve for a public park for two consumers who represent society is given by:

Graph the two demand curves and show the marginal social benefit curve for this public park. If the marginal cost of providing the park was €240, what would the optimum provision of this park be? Explain why any quantity above or below this amount would represent a less than efficient allocation

Transcribed Image Text:

P=150-Q and P = 250 - Qpz