The following table shows how the marginal benefit enjoyed by John, Mary, Loren, and all other consumers of outdoor rock concerts varies with the number made available by a city government per summer. a) Derive the demand curve for rock concerts assuming that it is a pure public good. b) If the marginal cost of producing rock concerts is $1,000 no matter how many are produced, then what is the efficient number of concerts to have each summer?
The following table shows how the marginal benefit enjoyed by John, Mary, Loren, and all other consumers of outdoor rock concerts varies with the number made available by a city government per summer. a) Derive the demand curve for rock concerts assuming that it is a pure public good. b) If the marginal cost of producing rock concerts is $1,000 no matter how many are produced, then what is the efficient number of concerts to have each summer?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The following table shows how the marginal benefit enjoyed by John, Mary, Loren, and all other consumers of outdoor rock concerts varies with the number made available by a city government per summer.
a) Derive the demand curve for rock concerts assuming that it is a pure public good.
b) If the marginal cost of producing rock concerts is $1,000 no matter how many are produced, then what is the efficient number of concerts to have each summer?
![Marginal Benefit of Number of Concert Per Customer in Dollars ($)
Number of Concerts
CONSUMER
3
4
150
125
125
John
Mary
75
50
100
100
75
Loren
100
75
50
25
All others
600
400
200
100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa90f24d1-fcfa-4101-837b-7ecb5615e777%2Fee63c6ad-c478-4926-b43f-79054810b623%2Fim3elkt_processed.png&w=3840&q=75)
Transcribed Image Text:Marginal Benefit of Number of Concert Per Customer in Dollars ($)
Number of Concerts
CONSUMER
3
4
150
125
125
John
Mary
75
50
100
100
75
Loren
100
75
50
25
All others
600
400
200
100
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