Suppose 1,000 people would each get a benefit of $40 from a levee. Building the levee is socially efficient if its cost is less than $ If the cost is $30,000, a tax of $ per person would generate unanimous support for the levee.
Suppose 1,000 people would each get a benefit of $40 from a levee. Building the levee is socially efficient if its cost is less than $ If the cost is $30,000, a tax of $ per person would generate unanimous support for the levee.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information
Section: Chapter Questions
Problem 12QP
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![1.1
Suppose 1,000 people would each get a benefit of $40 from a levee. Building the levee is
If the cost is $30,000, a tax of $
socially efficient if its cost is less than $
per
person would generate unanimous support for the levee.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8c0dec1-ebc4-452b-bc5d-c0b9033ab387%2F323d4859-481a-4727-9360-b4725b4edd02%2Fec4n0qu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1.1
Suppose 1,000 people would each get a benefit of $40 from a levee. Building the levee is
If the cost is $30,000, a tax of $
socially efficient if its cost is less than $
per
person would generate unanimous support for the levee.
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