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Question: The marginal benefits of wildlife habitat preservation in a society with just two individuals, Katya and Miguel, are given in the table below
Acres of wildlife Katya's marginal benefits Miguel's marginal benefit habitat (dollars) (dollars)
1 50 30
2 40 25
3 30 20
4 20 15
5 10 10
6 0 5
a. Draw a graph showing the social marginal benefits of wildlife preservation.
b. Suppose that wildlife preservation costs $40 per acre. How many acres of wildlife habitat should be preserved in this society?
c. What policy would you propose to achieve the efficient provision of wildlife habitat?
d. Which individual do you think would be less willing to support your policy proposal? Explain.
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