Maurice Tutor

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Category > Economics Posted 27 Jun 2018 My Price 5.00

town of Trommald

 The town of Trommald, MN, has two residents, Butch and Harry. For the town's Fourth of July Celebration, Butch has a demand for fireworks, a public good, of Q = 20-4P, and Harry has a demand of Q= 18-2P. The cost of each firework is $3.

a. (10 pts) What is the private optimum of fireworks for the town?

b. (10 pts) If it is impossible to purchase a fractional number of fireworks, what is the social optimum of fireworks for the town?

Answers

Maurice Tutor
(5)
Status NEW Posted 27 Jun 2018 10:06 PM My Price 5.00

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