If the village council sets a quota on the total amount of water such that the spring is used efficiently, what would be the quota and the market value of the water taken per day?
A spring runs under a village. Everyone can sink a well on her or his land and take water from the spring. Figure 17.11 shows the marginal social benefit from and the marginal cost of taking water.

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E 50 MSC 40 MC 8 30 20 MSB 200 400 600 800 Quantity Igallons per doy)