QUESTION 5Suppose 20 people each have the demand Q = 20-P for streetlights and 5 people have the demand Q = 18-2Pfor streetlights. The cost of building each streetlight is $10.a. Write the social marginal benefit equation: MBS =Type integers.b. The socially optimal number of street lights isplaces.Q/2. HintHint: Type the number in two decimalsocum

Streetlight is public good . Public good means a good which is non excludable and non rivalry in…

Answered: for a. Write the social marginal…

for a. Write the social marginal benefit equation: MBS = Type integers. b. The socially optimal number of street lights is places. Hint: Type the number in two decimal

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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