Explain why it is difficult for this commercial building to install the optimal quantity of fire sprinklers if there is no central party to coordinate the installation.
Explain why it is difficult for this commercial building to install the optimal quantity of fire sprinklers if there is no central party to coordinate the installation.
Chapter5: Supply, Demand, And Price: Applications
Section5.7: Application 7: Why Do Colleges Use Gpa,s Actss, And Sats, For Purposes Of Admission?
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Suppose there are 30 companies in a commercial building. Initially there is no fire sprinkler system in the public area of the building. The companies have identical individual demand curve for the fire sprinklers which is given by the equation: P = 10-0.5 Q, where P is the price of fire sprinkler and Q is the quantity of fire sprinkler.
A)Explain why it is difficult for this commercial building to install the optimal quantity of fire sprinklers if there is no central party to coordinate the installation.
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