### Determining social efficient level of snowploughing services

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Q2) Thelma and Louise are neighbours. Thelma’s marginal benefit from snowploughing services is 12-Z, where Z is number of the times, street is ploughed. Louise’s marginal benefit is 8-2Z. Marginal cost of getting street ploughed is \$16.

Determine social efficient level of provision for snowploughing services. Write down 3 possible methods in which they can share costs of snow ploughing at social efficient level and how much would each person pay under these 3 methods? Suppose Thelma makes \$90,000 per year and Louise \$10,000 per year.

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