Suppose that a country imported 10 tractors at a cost

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Unformatted text preview: is a public good. Individual A values the lighthouse at $8,5000, individual B, at $7,5000, and individual C, at $6,5000. The lighthouse costs $8,000 to build. (a) will the lighthouse be built? Why or why not? (b) What is the “free rider” problem? Explain. MACRO MATERIAL The Measurement of National Income: (Feb 2013) Q4. Suppose that a country imported 10 tractors at a cost of $25,000 each. Further suppose that 4...
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This note was uploaded on 03/28/2014 for the course ECON 100 taught by Professor Carr during the Summer '10 term at University of Toronto- Toronto.

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