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There are two individuals with demand for streetlights qd1

There are two individuals with demand for streetlights QD1= 150-P QD2= 200-P The marker supply is perfectly elastic at p=130.

a) What is the price and quantity of streetlights if market is competitive?

b) What is the socially optimal price and quantity of streetlights?

c) Why is a public good considered a market failure?

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