Problem
Advertising agencies have considered the possibility of projecting corporate logos on the moon, which is a public good. Oscar and Craig both enjoy seeing the moon logo-free for as many days per year as possible. Oscar's demand curve for logo-free days each year is a straight line starting at $365 with a slope of negative 1. Craig's demand curve is a straight line starting at $182.50 with a slope of negative 1/2. Draw Oscar and Craig's individual demand curves and the market demand curve, supposing that they are the only two moon-lovers in the market. Suppose that, whether through Coasian bargaining or political lobbying, logo-free days can be purchased for $200 each. Draw the price line and indicate the quantity that should be purchased to attain social efficiency. How many days would be purchased if Craig were a free rider?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.