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Unformatted text preview: A s coordinates). x A 2 = 2. The Santa Barbara Bowl (SBB) holds outdoor music events ( M ), earning $3 of revenue from each concert and with total costs of c M ( M ) = M 2 / 8 for M concerts. Ursula is a writer who lives right next to the SBB and who sells her novels on the competitive market at the price of p N = 2. The music that Ursula overhears from the SBB distracts and it costs her c N ( N,M ) = N 2 / 4+ M to write N novels. What is the socially optimal number of concerts for the SBB to hold?...
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This note was uploaded on 12/26/2011 for the course ECON 100B taught by Professor Kilenthong during the Fall '08 term at UCSB.
- Fall '08