raffic Lights in Plymouth) Look at the figure Traffic Lights in Plymouth. Plymouth has 1,000 residents. Each of the residents has the same individual marginal benefit per traffle light. If the government provides traffic lights, the socially efficient quantity is:

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(Figure: Traffic Lights in Plymouth) Look at the figure Traffic Lights in Plymouth. Plymouth has 1,000 residents. Each of the residents has the same individual marginal benefit per traffle light. If the government provides traffic lights, the socially efficient quantity is: 12. 0. 4. 8. 

Marginal
benefit,
marginal
cost
$12,000
10,000
8,000
6,000
4,000
2,000
0
2 4 6 8
10
MC
MSB
12
Number of
traffic lights
Transcribed Image Text:Marginal benefit, marginal cost $12,000 10,000 8,000 6,000 4,000 2,000 0 2 4 6 8 10 MC MSB 12 Number of traffic lights
(Figure: Traffic Lights in Plymouth) Look at the figure Traffic Lights in Plymouth. Plymouth has 1,000 residents. Each of the residents has the same individual marginal benefit per traffic
light. If the government provides traffic lights, the socially efficient quantity is:
12.
0.
Transcribed Image Text:(Figure: Traffic Lights in Plymouth) Look at the figure Traffic Lights in Plymouth. Plymouth has 1,000 residents. Each of the residents has the same individual marginal benefit per traffic light. If the government provides traffic lights, the socially efficient quantity is: 12. 0.
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