10. The accompanying table shows Tanisha’s and Ari’s individual marginal benefit of different amounts of street cleanings per month. Suppose that the marginal cost of street cleanings is constant at $9 each.
Quantity of street cleanings per month |
Tanisha’s individual marginal benefit |
Ari’s individual marginal benefit |
0 | ||
$10 | $8 | |
1 | ||
6 | 4 | |
2 | ||
2 | 1 | |
3 |
If Tanisha had to pay for street cleaning on her own, how many street cleanings would there be?
Calculate the marginal social benefit of street cleaning. What is the optimal number of street cleanings?
Consider the optimal number of street cleanings. The last street cleaning of that number costs $9. Is Tanisha willing to pay for that last cleaning on her own? Is Ari willing to pay for that last cleaning on his own?