I need the optimal quantity of dams along the river for society. 500- Consider the market for dams along a river, illustrated in the figure to the right, where S, is marginal private cost and D, is marginal private benefit. 450 &400- 350 Dams are an example of a public good 300 250- Suppose that the consumption of dams along a river generates a positive externality of $100 per unit. 200- 150 If so, then according to the figure, the optimal quantity of dams along a river for society is 8 units. (Enter your response as an integer.) 100- Price of dams along a river ( 50+ 0

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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1
I need the optimal quantity of dams along the river
for society.
500-
Consider the market for dams along a river, illustrated in the figure to the right, where S, is
marginal private cost and D, is marginal private benefit.
450-
400-
Dams are an example of a public good
350
300-
Suppose that the consumption of dams along a river generates a positive externality of $100
250-
per unit.
200-
150
If so, then according to the figure, the optimal quantity of dams along a river for society is 8
units. (Enter your response as an integer.)
100
50
9 10 11 12 13
Price of dams along a river (per
Transcribed Image Text:I need the optimal quantity of dams along the river for society. 500- Consider the market for dams along a river, illustrated in the figure to the right, where S, is marginal private cost and D, is marginal private benefit. 450- 400- Dams are an example of a public good 350 300- Suppose that the consumption of dams along a river generates a positive externality of $100 250- per unit. 200- 150 If so, then according to the figure, the optimal quantity of dams along a river for society is 8 units. (Enter your response as an integer.) 100 50 9 10 11 12 13 Price of dams along a river (per
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