Suppose Demand for a Public Park (Assume It Is a Pure

question 9

Essay

Suppose demand for a public park (assume it is a pure public good)for two groups of consumers (A and B)is given by:
Q_A = 12 - 2P
Q_B = 8 - P
where Q is the number of hectares each group would like to see incorporated into the park.If the marginal cost to provide the park is a constant $9.50/ha,what is the socially efficient number of hectares for the park?

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Definitions:

Insured

A person or entity covered by an insurance policy, receiving protection against specified risks or damages.

Risk Of Loss

In contractual terms, refers to which party bears the financial burden if the goods are damaged or lost before delivery is completed.

Fire

A rapid oxidation process, which is a chemical reaction resulting in the release of heat and light, commonly seen as flames.

Fixture

An item of personal property that has been attached to land or a building in such a way that it is considered legally a part of the real property.