Suppose that there are three people in a community that want public internet access. Use the table of marginal willingness to pay for public internet hotspots below for #18 - 19. Number of Person A Person B Person C Hotspots $35 $25 $15 $5 $0 $0 $30 $20 $10 $30 $25 $20 3 4 $0 $15 $0 $0 $10 $5 If the marginal cost for installing a hotspot is constant at $45 per hotspot and the fixed cost is $0, how many hotspots should the government provide? QUESTION 19 If the marginal cost of installing a hotspot is constant at $45 per hotspot, and the fixed cost is $0, how much should the government tax each person in order to provide the hotspots? Assume that the government taxes all members of the community equally.
Suppose that there are three people in a community that want public internet access. Use the table of marginal willingness to pay for public internet hotspots below for #18 - 19. Number of Person A Person B Person C Hotspots $35 $25 $15 $5 $0 $0 $30 $20 $10 $30 $25 $20 3 4 $0 $15 $0 $0 $10 $5 If the marginal cost for installing a hotspot is constant at $45 per hotspot and the fixed cost is $0, how many hotspots should the government provide? QUESTION 19 If the marginal cost of installing a hotspot is constant at $45 per hotspot, and the fixed cost is $0, how much should the government tax each person in order to provide the hotspots? Assume that the government taxes all members of the community equally.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that there are three people in a community that want
public internet access.
Use the table of marginal willingness to pay for public
internet hotspots below for #18 - 19.
Number of
Person A
Person B
Person C
Hotspots
$35
$25
$15
$5
$0
$0
$30
$20
$10
$0
$0
$0
$30
$25
$20
$15
$10
$5
2
3
4
If the marginal cost for installing a hotspot is constant at $45 per
hotspot and the fixed cost is $0, how many hotspots should the
government provide?
QUESTION 19
If the marginal cost of installing a hotspot is constant at $45 per
hotspot, and the fixed cost is $0, how much should the
government tax each person in order to provide the hotspots?
Assume that the government taxes all members of the community
equally.
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