You have 10 homogeneous consumers with WTP curves of P = 12 - 1/5Q for a...

 

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You have 10 homogeneous consumers with WTP curves of P = 12 - 1/5Q for a concert in an open park. What would be the optimal duration of the concert (Q in minutes) if the marginal cost of producing it was MC = 2Q? 15 minutes 20 minutes 30 minutes 45 minutes none of the above a. b. C. d. e. You have 10 homogeneous consumers with WTP curves of P = 12 - 1/5Q for a concert in an open park. What would be the optimal duration of the concert (Q in minutes) if the marginal cost of producing it was MC = 2Q? 15 minutes 20 minutes 30 minutes 45 minutes none of the above a. b. C. d. e.

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Answer b 20 minutes Step 1 Calcul ate the total consumer surplus CS at each of the 5 possibl... View the full answer