Find the efficient number of lighthouses along this coast

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Reference no: EM131868946

Suppose that there are only two fishermen, Zach and Jacob, who fish along a certain coast.they would each benefit if lighthouses were built along the coast where the fish. the maginal cost of building each additional lighthouses is $100. the marginal benefit to zach of each additional lighthouses is 90-Q, and the marginal benefit to jacob is 40-Q, where Q equals the number of lighthouses.

A) Explain why we might not expect to find the efficient number of lighthouses along this coast ?

B) What is the efficient number of lighthouses? What would be the net benefits to Zach and Jacob if the efficient number were provided?

Reference no: EM131868946

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