Preserved in an economically efficient


mb(Q0 = 100 - Q/1.2
mb(Q) = price per acre
Q acres of habitat
MC of preserving an acre of habitat is constant at $60,000/yr.

How many acres (a public good) would be preserved in an economically efficient scenario?

Solution Preview :

Prepared by a verified Expert
Microeconomics: Preserved in an economically efficient
Reference No:- TGS0917491

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)