Figure 142 Amit and Bree Are the Only Two Homeowners

question 76

Multiple Choice

Figure 14.2 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 14.2 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 14.2.How much is Amit willing to pay to have 4 street lights installed?

• A)$3600
• B)$2700
• C)$1800
• D)$900

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Definitions:

Estimate

An approximate calculation or judgment of a value, number, quantity, or extent of something.

Health Consciousness

An awareness and consideration for the health implications of one's habits and decisions, particularly in consumption and lifestyle.

Confidence Interval

A range of values used in statistics that is likely to contain the true value of an unknown parameter, calculated from a given set of sample data.

Sample Mean

The average of all measurements in a sample set, calculated by summing all observations and dividing by the number of observations.