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

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 17SQ

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