How large should the park be to maximize total consumer


Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park for themselves. The table below shows each resident’s willingness to pay (reservation price) for each acre of the park. Acre Sophia Amber Cedric 1st $10 $24 $6 2nd 9 18 5 3rd 6 15 4 4th 3 8 3 5th 2 6 2 6th 0 4 1 7th 0 2 0 Suppose the cost to build the park is $9 per acre. How large should the park be to maximize total (consumer) surplus from the park in Springfield?

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Financial Management: How large should the park be to maximize total consumer
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