Problem
Just north of the town of Muskrat, Ontario, is the town of Brass Monkey, population 700. Brass Monkey, like Muskrat, has a single public good, the town skating rink and a single private good, Labatt Ale. Everyone's utility function is U_i(X_i, Y) = X_i - 121/Y, where X_i is the number of bottles of ale consumed by i and Y is the size of the skating rink in square meters. The price of ale is $1 per bottle. The cost of the skating rink to the city is $7 per square meter. Everyone has an income of at least $5,000. What is the Pareto efficient size for the town skating rink?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.