Problem
There are three consumers A, B and C. Consumer A is willing to pay 40-.25F dollars for a unit of flowers for the public square, B is willing to pay 75-.25F dollars for a unit of flowers, and C is willing to pay 60-.25F for a unit of flowers. If the cost of flowers is constant at $100 per unit what is the pareto optimal quantity of flowers to put in the square? Suppose that individual A pays $25 per unit, individual B pays $50 per unit cost and C pays $25. Will the group unanimously agree to the efficient level of F? If not, what must each person pay per unit for agreement to occur? Now suppose that individual B lies about his preferences; stating a willingness to pay of 30-.25F. If unanimous agreement occurs how many units of flowers are provided and what does each person pay? Compare this situation to the case where each tells the truth.
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.