Amy, brooke, and chelsea live in minneapolis. amy's demand for bike paths, a public good, is given by q=24-4p. brooke's demand is q-14-p. and chelsea's is q-5-p/3. the marginal cost of building a bike path is mc-18. the town government decides to use the following procedure for deciding how many paths to build. it als each resident how many paths she wants, and it builds the largest number asked for by any resident. to pay for these paths, it then taxes amy, brooke, and chelsea the prices a, b, and c per path, respectively, where a++mo. the residents know these tax rates before stating how many paths they want.) if the taxes are set so that each resident shares the cost evenly ( a c ), how many paths will get built? show that the government can achieve the social optimum by setting the correct tax prices a, b, and c. what prices should it set?

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

hopefull this will you!

the business rule that governs the relationship is one-to-many as there are multiple customers for each agent.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: