Figure 112 Amit and Bree Are the Only Two Homeowners

question 104

Multiple Choice

Figure 11.2 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 11.2 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 11.2.How much is Bree willing to pay to have four street lights installed?

• A) $1500
• B) $1800
• C) $2700
• D) $7200