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Unformatted text preview: If the company is only interested in maximizing profit, should it build the bridge? To max profits, you should charge P=$4, Q=400, profit is $1600-$2000 = -$400 Why or why not? -Given the information in the problem, what is the socially optimal price to charge percrossing? At this price, do the benefits of the bridge outweigh the costs? Explain. Does benefit of crossing outweigh the costs? Worth more than it costs...
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- Fall '07