Consider the setup from Question 2. The government proposes an alternative, market-based solution. They charge each citizen the price p for every, firemen stationed at the local fire station. Then, the price is being set at a level p* at which each individual demands the socially optimal number of firemen. What is the price p*? Assuming that the cost of each fireman is equal to 1, would the government be able to finance the firemen using only the payments from the two citizens? O a. The price is p* = 1/2, which is enough to finance the socially optimal number of firemen. O b. The price must be p* = 0, which is not enough to finance the socially optimal number of firemen. O c. The price is p* 1, which is enough to finance the socially optimal number of firemen. O d. The price is p* = 1/2, which is not enough to finance the socially optimal number of firemen.

Consider the setup from Question 2. The government proposes an alternative, market-based solution. They charge each citizen the price p for every, firemen stationed at the local fire station. Then, the price is being set at a level p* at which each individual demands the socially optimal number of firemen. What is the price p? Assuming that the cost of each fireman is equal to 1, would the government be able to finance the firemen using only the payments from the two citizens? O a. The price is p = 1/2, which is enough to finance the socially optimal number of firemen. O b. The price must be p* = 0, which is not enough to finance the socially optimal number of firemen. O c. The price is p* 1, which is enough to finance the socially optimal number of firemen. O d. The price is p* = 1/2, which is not enough to finance the socially optimal number of firemen.

Administration Of Wills/Trusts/ And Estates

5th Edition

ISBN:9781285281308

Author:Brown

Publisher:Brown

Chapter9: Specialized Trusts

Section: Chapter Questions

Problem 2CTD

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