Explain why we might not expect to find the efficient


Suppose that there are only two fishermen, Zach and Jacob, who fish along a certain coast.they would each benefit if lighthouses were built along the coast where the fish. the maginal cost of building each additional lighthouses is $100. the marginal benefit to zach of each additional lighthouses is 90-Q, and the marginal benefit to jacob is 40-Q, where Q equals the number of lighthouses.

A) Explain why we might not expect to find the efficient number of lighthouses along this coast ?

B) What is the efficient number of lighthouses? What would be the net benefits to Zach and Jacob if the efficient number were provided?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Explain why we might not expect to find the efficient
Reference No:- TGS02664443

Expected delivery within 24 Hours