Calculate the net benefit of this preservation project

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Reference no: EM133365009

Question: Manitoba is considering preserving a very scenic river. The community has 100 people each of whom has a demand given by q :10- 0.119 where q is the number of miles preserved and p is the price per mile she/he is willing to pay for q miles of preserved river. The marginal cost of preserving the river is $500 per mile.

a. Draw a full-labelled diagram to depict the problem described above.

b. How many miles would be preserved in an efficient allocation? Explain your reasoning.

c. Calculate the net benefit of this preservation project? Show this in you diagram.

Reference no: EM133365009

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