Assume that Harriet, Iris, and Josephine each value public community park. They have the following demands where the size of park Q is measured in thousands of square feet. For example, Harriet's maximum value is $150 per year.
Ph = 150 - 0.5Q Harriet
Pi = 200 - 0.75Q Iris
Pj = 130 - 0.4Q Josephine
The marginal cost of the park is $60 per 1000 square feet.
a. Determine the condition necessary to determine the optimum amount of Q that is provided?
b. Given the parameters of demands, determine the optimum amount of Q to be provided?
c. Suppose that Harriet's twin brother Harry moves in, and his preferences are identical to Harriet's. There're now four people in the problem. Answer question (b) under these conditions.