2. Remember or air filter example from class. People valued clean air at Sn, where n is the number of people who use a filter. There are 100 people and a filter costs $25. If all 100 buy a filter, n100, so cach gets a benefit of S100 for a cost of $25. Why do we expect that no one will buy the filter? Is the outcome efficient? If not, how could the problem be solved?

Advanced Engineering Mathematics
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ISBN:9780470458365
Author:Erwin Kreyszig
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2. Remember or air filter example from class. People valued clean air at Sn, where n is the
number of people who use a filter. There are 100 people and a filter costs $25. If all 100 buy a
filter, n100, so cach gets a benefit of S100 for a cost of $25. Why do we expect that no one will
buy the filter? Is the outcome efficient? If not, how could the problem be solved?
Transcribed Image Text:2. Remember or air filter example from class. People valued clean air at Sn, where n is the number of people who use a filter. There are 100 people and a filter costs $25. If all 100 buy a filter, n100, so cach gets a benefit of S100 for a cost of $25. Why do we expect that no one will buy the filter? Is the outcome efficient? If not, how could the problem be solved?
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