A little bit of colleges have decided that making buses available between the school and other school amenties is a public good. Assume that each bus costs $5,000 to make avaible and that there are 1,000 individuals, each have equal willingness to pay: $11 for the first bus, $9 for the second bus, $7 for the third bus, $5 for the fourth bus, and $3 for the fifth bus. How much should the colleges charge in fees/person to provide buses?
Permutations and Combinations
If there are 5 dishes, they can be relished in any order at a time. In permutation, it should be in a particular order. In combination, the order does not matter. Take 3 letters a, b, and c. The possible ways of pairing any two letters are ab, bc, ac, ba, cb and ca. It is in a particular order. So, this can be called the permutation of a, b, and c. But if the order does not matter then ab is the same as ba. Similarly, bc is the same as cb and ac is the same as ca. Here the list has ab, bc, and ac alone. This can be called the combination of a, b, and c.
Counting Theory
The fundamental counting principle is a rule that is used to count the total number of possible outcomes in a given situation.
A little bit of colleges have decided that making buses available between the school and other school amenties is a public good.
Assume that each bus costs $5,000 to make avaible and that there are 1,000 individuals, each have equal willingness to pay: $11 for the first bus, $9 for the second bus, $7 for the third bus, $5 for the fourth bus, and $3 for the fifth bus.
How much should the colleges charge in fees/person to provide buses?
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