in deciding whethe privately. Suppose that there are only two fishern Zach and Jacob, who fish along a certain coast. They would each benefit if lighthouses were built along the coast where they fish. The marginal cost of building each additional light- house is $100. The marginal benefit to Zach of each additional lighthouse is 90 – Q, and the marginal benefit to Jacob is 40 - Q, where Q equals the number of lighthouses. a. Explain why we might not expect to find the efficient number of lighthouses along this coast. h What is the efficient number of lighthouses? What would be the net benefits to Zach and Jacob if the efficient number were provided? A lone person fishing at a lako

in deciding whethe privately. Suppose that there are only two fishern Zach and Jacob, who fish along a certain coast. They would each benefit if lighthouses were built along the coast where they fish. The marginal cost of building each additional light- house is $100. The marginal benefit to Zach of each additional lighthouse is 90 – Q, and the marginal benefit to Jacob is 40 - Q, where Q equals the number of lighthouses. a. Explain why we might not expect to find the efficient number of lighthouses along this coast. h What is the efficient number of lighthouses? What would be the net benefits to Zach and Jacob if the efficient number were provided? A lone person fishing at a lako

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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