Consider the town of Anywhere with only three residents, Mary, Bill, and Tricia. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each residents willingness to pay for each acre of the park. Acres Mary Bill Tricia 1 $14 $18 $30 2 10 14 26 3 6 10 22 4 4 6 18 5 2 3 14 6 0 1 10 7 0 0 6 a)Suppose the cost to build the park is $33 per acre. How many acres should the park be to maximize total surplus from the park in Anywhere? A. 2 acres B. 3 acres C. 4 acres D. 5 acres b)Suppose the cost to build the park is $16 per acre. How many acres should the park be to maximize total surplus from the park in Anywhere? A. 2 acres B. 3 acres C. 4 acres D. 5 acres
Consider the town of Anywhere with only three residents, Mary, Bill, and Tricia. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each residents willingness to pay for each acre of the park.
Acres Mary Bill Tricia
1 $14 $18 $30
2 10 14 26
3 6 10 22
4 4 6 18
5 2 3 14
6 0 1 10
7 0 0 6
a)Suppose the cost to build the park is $33 per acre. How many acres should the park be to maximize total surplus from the park in Anywhere?
A. 2 acres
B. 3 acres
C. 4 acres
D. 5 acres
b)Suppose the cost to build the park is $16 per acre. How many acres should the park be to maximize total surplus from the park in Anywhere?
A. 2 acres
B. 3 acres
C. 4 acres
D. 5 acres
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