What is efficient number of concerts to have each summer


Response to the following problem:

The following table shows how the marginal benefit enjoyed by John, Mary, Loren, and all other consumers of outdoor rock concerts varies with the number made available by a city government per summer.

a. Derive the demand curve for rock concerts assuming that it is a pure public good.

b. If the marginal cost of producing rock concerts is $1,000 no matter how many are produced, then what is the efficient number of concerts to have each summer? What would be the efficient number of concerts to produce if the marginal cost of production were $425 instead of $1,000?

 

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Financial Accounting: What is efficient number of concerts to have each summer
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