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Suppose 20 people each have the demand Q = 20 P for streetlights and 5 people

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Suppose 20 people each have the demand Q = 20 − P for streetlights and 5 people have the demand Q = 18 − 2P for streetlights. The cost of building each streetlight is 10. If it is impossible to purchase a fractional number of streetlights, how many streetlights are socially optimal?
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Compute the social optimum by inverting the demand curves and summing to get the socia...View the full answer


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Public Finance and Public Policy

Public Finance and Public Policy

ISBN: 978-1464143335

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