Alexander and Vanessa benefit from scientific research. Alexander's marginal private benefit from such research is given by the equationP= 200 -Q,whereQrefers to the amount of research undertaken andPis the price Alexander is willing to pay for such research. Vanessa's marginal private benefit from such research is given by the equation P= 100 -Q.The marginal social cost of engaging in such research is constant at $100. Reference: Ref 17-15
(Scenario: Alexander and Vanessa) Refer to the scenario Alexander and Vanessa. If the socially optimal level of scientific research is produced and if both Vanessa and Alexander are truthful in disclosing the marginal private benefits they expect to receive from this research, what is the price per unit of research that Vanessa is willing to pay?