× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
p
4
h
4
c
4
d
3
3
c
3
t
3
u
3
A
3
B
3
j
3
s
3
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
Mairoon Mairoon
wrote...
Posts: 850
Rep: 0 0
6 years ago
Suppose three neighbors must vote on the installation of a traffic light that costs $210. The cost of the light will shared by all three. Voter A values the light at $50; voter B values the light at $50; and voter C (who drives the most) values the light at $200. If the voting rule is that the majority wins, does the light get purchased? Is it efficient to purchase the light?
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
Read 60 times
2 Replies

Related Topics

Replies
wrote...
#1
6 years ago
The cost of the light to each voter is $70. Since MC > MB for two of them, the light does not get purchased. It is efficient to purchase the light since SMB = 300 which exceeds the MC of 210.
Mairoon Author
wrote...
#2
5 years ago
Perfect
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1224 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 636
  
 680
  
 1022
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 820
Previous poll results: Which is the best fuel for late night cramming?