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g There are three types of people in the town of Santa Barbara: 13 type A, 25 type B, and 32 type C. Everyone in the town loves public gardens. Each type A person is willing to pay 3 per acre of garden,
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g There are three types of people in the town of Santa Barbara: 13 type A, 25 type B, and 32 type C. Everyone in the town loves public gardens. Each type A person is willing to pay 3 per acre of garden, each type B is willing to pay 3, and each type C is willing to pay 6. The marginal cost of providing G acres of garden is 13G. What is the Pareto Efficient garden area?

User Efie
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1 Answer

3 votes

Answer:

23.5 acres

Step-by-step explanation:

Pareto Efficient garden area:

Marginal Cost = Marginal Benefit

13G = (13*3)+(25*3)+(32*6)

13G = 306

G =
(306)/(13)

G = 23.5

User Suzon
by
3.4k points
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