Suppose 20 people each have the demand Q = 20 - P for streetlights, and 5 people have the demand Q = 18 - 2P for streetlights. The cost of building each streetlight is $10. If it is impossible to purchase a fractional number of streetlights, how many streetlights are socially optimal?

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
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Suppose 20 people each have the demand Q = 20 - Pfor streetlights, and 5
people have the demand Q = 18 - 2P for streetlights. The cost of building
each streetlight is $10. If it is impossible to purchase a fractional number
of streetlights, how many streetlights are socially optimal?
Transcribed Image Text:Suppose 20 people each have the demand Q = 20 - Pfor streetlights, and 5 people have the demand Q = 18 - 2P for streetlights. The cost of building each streetlight is $10. If it is impossible to purchase a fractional number of streetlights, how many streetlights are socially optimal?
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