The hypothetical city of Hurstville is trying to decide how many city beautification projects should be approved each year. These projects involve planting gardens, commissioning murals, and building fountains. The city has two types of citizens. Type B citizens appreciate beauty more than type A citizens. There is an equal number of each type of citizen. The accopmanying graph depicts each type of citizen's marginal benefit for city beautification projects. The average cost of each project is $400. Use the information in the graph to answer the questions. Use the interactive points to draw the marginal social benefits (MSB) curve. What is the optimal quantity of city beautification projects? 3 projects 1,000 Marginal benefit / Marginal cost ($) 900 800 700 600 500 400 300 200 100 0 0 MSB 1 2 MBA MBB 3 4 5 6 Quantity of projects 7 8 MSC 9 10
The hypothetical city of Hurstville is trying to decide how many city beautification projects should be approved each year. These projects involve planting gardens, commissioning murals, and building fountains. The city has two types of citizens. Type B citizens appreciate beauty more than type A citizens. There is an equal number of each type of citizen. The accopmanying graph depicts each type of citizen's marginal benefit for city beautification projects. The average cost of each project is $400. Use the information in the graph to answer the questions. Use the interactive points to draw the marginal social benefits (MSB) curve. What is the optimal quantity of city beautification projects? 3 projects 1,000 Marginal benefit / Marginal cost ($) 900 800 700 600 500 400 300 200 100 0 0 MSB 1 2 MBA MBB 3 4 5 6 Quantity of projects 7 8 MSC 9 10
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![The hypothetical city of Hurstville is trying to decide how
many city beautification projects should be approved each
year. These projects involve planting gardens,
commissioning murals, and building fountains. The city has
two types of citizens. Type B citizens appreciate beauty more
than type A citizens. There is an equal number of each type
of citizen. The accopmanying graph depicts each type of
citizen's marginal benefit for city beautification projects. The
average cost of each project is $400. Use the information in
the graph to answer the questions.
Use the interactive points to draw the marginal social
benefits (MSB) curve.
What is the optimal quantity of city beautification projects?
3
projects
1,000
Marginal benefit / Marginal cost ($)
900
800
700
600
500
400
300
200
100
0
0
MSB
1
2
MBA
MBB
3
4
5
6
Quantity of projects
7
8
MSC
9
0
10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec1f891c-dde1-485d-a1cc-43ebddb9d38d%2F935ec7d4-b1c1-4d7e-ab7f-888f2509f42e%2Ftpgoftg_processed.png&w=3840&q=75)
Transcribed Image Text:The hypothetical city of Hurstville is trying to decide how
many city beautification projects should be approved each
year. These projects involve planting gardens,
commissioning murals, and building fountains. The city has
two types of citizens. Type B citizens appreciate beauty more
than type A citizens. There is an equal number of each type
of citizen. The accopmanying graph depicts each type of
citizen's marginal benefit for city beautification projects. The
average cost of each project is $400. Use the information in
the graph to answer the questions.
Use the interactive points to draw the marginal social
benefits (MSB) curve.
What is the optimal quantity of city beautification projects?
3
projects
1,000
Marginal benefit / Marginal cost ($)
900
800
700
600
500
400
300
200
100
0
0
MSB
1
2
MBA
MBB
3
4
5
6
Quantity of projects
7
8
MSC
9
0
10
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