A home-team baseball victory produces benefits for residents (in terms of hometown pride) that is both nonrival and nonexcludable. The graph on the right depicts the marginal benefits that Beatrice, Edward, and Charlotte (the residents of a very tiny town indeed) receive from hometeam wins. The graph also depicts the marginal costs of achieving each victory.
a. Draw the total marginal benefit received by hometown residents. Graph your result carefully.
b. Determine the socially optimal number of wins. Indicate this amount on your graph.

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Marginal benefit, marginal cost $250 200 MC MBB 100 1- MB 50 MBc 25 50 75 100 Quantity of wins 0