Suppose 10 people each have the demand Q=20-4P for streetlights and 5 people have the demand Q= 18-2P for streetlights. The cost of building each streetlight is 3. If it is impossible to purchase a fractional number of streetlights, how many streetlights are socially optimal?

Suppose 10 people each have the demand Q=20-4P for streetlights and 5 people have the demand Q= 18-2P for streetlights. The cost of building each streetlight is 3. If it is impossible to purchase a fractional number of streetlights, how many streetlights are socially optimal?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 3SQP

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Question

Suppose 10 people each have the demand Q-20-4P for streetlights and 5 people
have the demand Q=18-2P for streetlights. The cost of building each streetlight
is 3. If it is impossible to purchase a fractional number of streetlights, how many
streetlights are socially optimal?

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