The following table shows how the private marginal benefitenjoyed by John, Mary, Loren, and all other consumers of outdoorrock concerts varies with the number made available by a citygovernment per summer.
A. Derive the demand curve for rock concerts assuming an outdoorrock concert is a public good and graph the problem. Note: It isnot necessary to derive demand using algebraic equations, this canbe illustrated graphically.
Number of Concerts| Consumers | 1 | 2 | 3 | 4 |
|---|
| John | 150 | 125 | 100 | 75 |
| Mary | 125 | 100 | 75 | 50 |
| Loren | 100 | 75 | 50 | 25 |
| All Others | 600 | 400 | 200 | 100 |
B. If marginal cost of producing rock concerts is $1,000 nomatter how many are produced, what is the efficient number ofconcerts to have each summer? What would be the efficient number ofconcerts to produce if the marginal cost of production were $425instead of $1,000?
