Suppose that there are three people in a community that want public internet access. Use the table of marginal willingness to pay for public internet hotspots below for #18 - 19. Number of Person A Person B Person C Hotspots $35 $25 $15 $5 $0 $0 $30 $20 $10 $30 $25 $20 3 4 $0 $15 $0 $0 $10 $5 If the marginal cost for installing a hotspot is constant at $45 per hotspot and the fixed cost is $0, how many hotspots should the government provide? QUESTION 19 If the marginal cost of installing a hotspot is constant at $45 per hotspot, and the fixed cost is $0, how much should the government tax each person in order to provide the hotspots? Assume that the government taxes all members of the community equally.

Suppose that there are three people in a community that want public internet access. Use the table of marginal willingness to pay for public internet hotspots below for #18 - 19. Number of Person A Person B Person C Hotspots $35 $25 $15 $5 $0 $0 $30 $20 $10 $30 $25 $20 3 4 $0 $15 $0 $0 $10 $5 If the marginal cost for installing a hotspot is constant at $45 per hotspot and the fixed cost is $0, how many hotspots should the government provide? QUESTION 19 If the marginal cost of installing a hotspot is constant at $45 per hotspot, and the fixed cost is $0, how much should the government tax each person in order to provide the hotspots? Assume that the government taxes all members of the community equally.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 1SCQ: Classify the following as a government-enforced barrier to entry, a banker to entry that is not...

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