What is the pareto efficient number of streetlights

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Suppose that 10 people live on a street and that each of them is willing to pay $2 for each extra streetlight regardless of the number of streetlights provided. If the cost of providing x streetlights is given by C(x) = x2, what is the Pareto efficient number of streetlights to provide? (HINT: you have to calculate social marginal value and put it equal to marginal cost).

Reference no: EM131240654

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