(Table: Marginal Benefit from Additional Streetlights) Dave and Art Live

question 182

Multiple Choice

(Table: Marginal Benefit from Additional Streetlights) Dave and Art live in a new housing development and would like to have streetlights installed.The table Marginal Benefit from Additional Streetlights shows Dave's and Art's individual marginal benefit of different numbers of streetlights.Suppose that the marginal cost of installing a streetlight is $6.What is the socially optimal number of streetlights in the neighborhood?

• A)1
• B)2
• C)3
• D)4

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