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2. The Parks and Recreation Department of Pawnee is trying to decide on the number of fireworks shows for the summer of 2022. The cost of each fireworks show is $50. Pawnee has 10 residents and each have the same willingness to pay, which is decreasing in the number of fireworks shows q : 8 9. (You can ignore the effects of the free rider problem below.)

2. The Parks and Recreation Department of Pawnee is trying to decide on the number of fireworks shows for the summer of 2022. The cost of each fireworks show is $50. Pawnee has 10 residents and each have the same willingness to pay, which is decreasing in the number of fireworks shows q : 8 9. (You can ignore the effects of the free rider problem below.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. The Parks and Recreation Department of Pawnee is trying to decide on the number of fireworks shows for the summer of 2022. The cost of each fireworks show is $50. Pawnee has 10 residents and each have the same willingness to pay, which is decreasing in the number of fireworks shows q : 8-9. (You can ignore the effects of the free rider problem below.)
Transcribed Image Text:2. The Parks and Recreation Department of Pawnee is trying to decide on the number of fireworks shows for the summer of 2022. The cost of each fireworks show is $50. Pawnee has 10 residents and each have the same willingness to pay, which is decreasing in the number of fireworks shows q : 8-9. (You can ignore the effects of the free rider problem below.)
Ben Wyatt proposes that the Parks and Recreation Department should provide a subsidy for fireworks. e. What is the optimal subsidy that implements the social optimum?
Transcribed Image Text:Ben Wyatt proposes that the Parks and Recreation Department should provide a subsidy for fireworks. e. What is the optimal subsidy that implements the social optimum?
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