What is the minimum amount person three is willing to pay

Reference no: EM13200120

The marginal cost of providing 25 neighborhood street lamps is $2000. There are 3 people living in the neighborhood. Person 1 is willing to pay $800 for the 25 lamps and person 2 is willing to pay $300 for the 25 street lamps. Efficiency requires that 25 lamps be provided. What is the minimum amount person 3 is willing to pay for 25 street lamps?

Reference no: EM13200120

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