Sketch the two marginal benefit schedules

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Reference no: EM131499808

Question: Thelma and Louise are neighbors. During the winter, it is impossible for a snowplow to clear the street in front of Thelmas house without clearing the front of Louises. Thelmas marginal benefit from snowplowing services is 12 - Z, where Z is the number of times the street is plowed. Louises marginal benefit is 8 - 2Z The marginal cost of getting the street plowed is $16. Sketch the two marginal benefit schedules and the aggregate marginal benefit schedule. Draw in the marginal cost schedule, and find the efficient level of provision for snowplowing services.

Reference no: EM131499808

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