X(p)=1,000,000-200,000p, where p is the price charged by the government for use of a bridge, per unit time, or the user fee. The government wants to see if the bridge is socially worthwhile. Calculate the social benefit when p=0 and when p=(5-Square root 5/2)=1.382. b. Find the price that would maximize government revenue from the bridge, pX(p). If

X(p)=1,000,000-200,000p, where p is the price charged by the government for use of a bridge, per unit time, or the user fee. The government wants to see if the bridge is socially worthwhile. Calculate the social benefit when p=0 and when p=(5-Square root 5/2)=1.382. b. Find the price that would maximize government revenue from the bridge, pX(p). If

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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