Thelma and Louise are neighbors. During the winter, it is impossible for a snowplow to clear the
street in front of Thelma's house without clearing the front of Louise's house. Thelma's marginal
benefit (measured in $-dollars) from snowplowing services is MB(Thelma) = 12-Z where Z is the
number of times the street is plowed. Louise's marginal benefit is MB(Louise) = 8-2Z. The
marginal costs of getting the street plowed is constant at $16 (i.e. meaning that MC = $16). Use a
graph and sketch the two private marginal benefit curves and the total marginal benefit curve.
Draw in the marginal cost curve, and find the efficient level of provision for snowplowing services..
Thelma and Louise are neighbors During the winter it is im.pdf
1. Thelma and Louise are neighbors. During the winter, it is impossible for a snowplow to clear the
street in front of Thelma's house without clearing the front of Louise's house. Thelma's marginal
benefit (measured in $-dollars) from snowplowing services is MB(Thelma) = 12-Z where Z is the
number of times the street is plowed. Louise's marginal benefit is MB(Louise) = 8-2Z. The
marginal costs of getting the street plowed is constant at $16 (i.e. meaning that MC = $16). Use a
graph and sketch the two private marginal benefit curves and the total marginal benefit curve.
Draw in the marginal cost curve, and find the efficient level of provision for snowplowing services.
