assume that there are 1000 residents of a town, each of whose marginal benefit (willingness to pay) for having x miles of roads is P = 100 - 5x. Roads are built competitively at a marginal cost of MC = 2000 per mile. Roads are a public good. What is the efficient level of roadway construction? It is closest to? If residents decide on road building independently, how many miles of roadway will be built? It is closest to:

assume that there are 1000 residents of a town, each of whose marginal benefit (willingness to pay) for having x miles of roads is P = 100 - 5x. Roads are built competitively at a marginal cost of MC = 2000 per mile. Roads are a public good. What is the efficient level of roadway construction? It is closest to? If residents decide on road building independently, how many miles of roadway will be built? It is closest to:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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