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Use the Following to Answer Questions -(Table: Marginal Benefit from Additional Streetlights)Use Table: Marginal Benefit from of }

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Use the following to answer questions :  Quantity of  Dave’s  Art’s  Streetlights in the  Individual  Individual  Neighbourhood  Marginal Benefit  Marginal Benefit 01$15$20210153510423\begin{array}{l}\begin{array}{lcc}\hline\text { Quantity of } & \text { Dave's } & \text { Art's } \\\text { Streetlights in the } & \text { Individual } & \text { Individual } \\\text { Neighbourhood } & \text { Marginal Benefit } & \text { Marginal Benefit }\\\hline0&&\\1&\$ 15 & \$ 20 \\2&10 & 15 \\3&5 & 10 \\4&2 & 3\\\hline \end{array}\\\end{array}

-(Table: Marginal Benefit from Additional Streetlights) Use Table: Marginal Benefit from Additional Streetlights.Suppose that the marginal cost of installing a streetlight is $6.What is the socially optimal number of streetlights in the neighbourhood?


Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that becomes conditioned after being associated with an unconditioned stimulus.

Unconditioned Stimulus

Within classical conditioning, a stimulus that inherently and automatically elicits a response without any previous training.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any previous conditioning or learning.

Ivan Pavlov

A Russian physiologist best known for his work in classical conditioning, particularly his experiments with dogs that led to the discovery of the conditioned reflex.

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