Figure 5-16 Amit and Bree Are the Only Two Homeowners on an Only

question 57

Multiple Choice

Figure 5-16

Amit and Bree are the only two homeowners on an isolated private road. Both agree that installing street lights along the road would be beneficial and want to do so. Figure 5-16 shows their willingness to pay for different quantities of street lights, the market demand for street lights, and the marginal cost of installing the street lights.
-Refer to Figure 5-16.How much is Amit willing to pay per street light to have 4 street lights installed?

• A)$3,600
• B)$2,700
• C)$1,800
• D)$900

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