Set so that each resident shares the cost evenly

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Q. Andrew, Beth also Cathy live in Lindhville. Andrew's demand for bike paths, a public good, is given by Q=12-2P. Beth's demand is Q=18-P also Cathy's is Q=8-P/3. The marginal cost of building a bike path is MC=21. The town government decides to use the subsequent procedure for deciding how so many paths to build. It asks each resident how so many paths they want also it builds the largest number asked for by any resident. To pay for these paths, it After that taxes Andrew, Beth also Cathy the costs a+b+c=MC. The residents know these tax rates before stating how so many paths they want.

A. If the taxes are set so that each resident shares the cost evenly (a=b=c), how so many paths will get built?

Reference no: EM1321429

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