pose a gated housing community includes 150 identical households. It is cos naintain the roads in the gated community. Suppose each household ha ginal benefit MB = 200 – 25M for each mile of road maintained. The to of maintaining roads is given by C = 20000M (MC=20000). . the residents have to pay individually to maintain the roads in the vicir Ift of their property, how many miles of roads will each household choose maintain on their own? . How many miles of roads should be maintained for the commur considering the public good nature of roads? . Suppose the community association could charge a flat fee to households to fund the maintenance of the roads. How much should this be per household and what is the total cost of maintaining the socia efficient level of this public good? . Draw the individual marginal benefit curves, overall marginal benefit a the marginal cost curve. Identify and calculate the net social benefit of public good.

pose a gated housing community includes 150 identical households. It is cos naintain the roads in the gated community. Suppose each household ha ginal benefit MB = 200 – 25M for each mile of road maintained. The to of maintaining roads is given by C = 20000M (MC=20000). . the residents have to pay individually to maintain the roads in the vicir Ift of their property, how many miles of roads will each household choose maintain on their own? . How many miles of roads should be maintained for the commur considering the public good nature of roads? . Suppose the community association could charge a flat fee to households to fund the maintenance of the roads. How much should this be per household and what is the total cost of maintaining the socia efficient level of this public good? . Draw the individual marginal benefit curves, overall marginal benefit a the marginal cost curve. Identify and calculate the net social benefit of public good.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 8PA

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