7 (ii)There are 50 ships using a rocky harbor. Each has the same demand for lighthouseservice X:X = 20 - P/2(a) What is the aggregate demand for lighthouse services?(b) If the marginal cost of having a lighthouse is $100 per unit of service, how muchlighthouse service should there be?

A public good is non-rival and non-excludable in nature. The aggregate demand curve of a public…

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There are 50 ships using a rocky harbor. Each has the same demand for lighthouse service X: X = 20-P/2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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