1. Business
  2. Economics
  3. consider the town of anywhere with only three residents mary...

Question: consider the town of anywhere with only three residents mary...

Question details

Consider the town of Anywhere with only three residents, Mary, Bill, and Tricia. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each residents willingness to pay for each acre of the park. Acres Mary $14 10 6 4 2 0 0 Bill $18 14 10 Tricia $30 26 2 3 18 14 10 1 0 Refer to Table 11-1. Suppose the cost to build the park is $33 per acre and that the residents have agreed to split the cost of building the park equally. To maximize his own surplus, how many acres would Bill like Anywhere to build? O 0 acres O 1 acre O 2 acres O 3 acres
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution