A country is deciding how many schools to open in a given state. The costs and benefits per school are given by: Total Benefits = 314S -1.6S^2
Total Costs = 50S + 1.7S^2
(a) According to a BCA should the country choose between zero or 30 schools if these are the only options?
(b) According to a BCA should the country choose between zero or 90 schools if these are the only options?
(c) What is number of schools that achieves static efficiency?