Just north of the town of Muskrat, Ontario, is the town of Brass Monkey, population 6,400. Brass Monkey, like Muskrat, has a single public good, the town skating rink, and a single private good, Labatt Ale. Everyone's utility function is U_i(X_i, Y) = X_i - , where X_i is the number of bottles of ale consumed by i and Y is the size of the skating rink in square meters. The price of ale is $1 per bottle. The cost of the skating rink to the city is $4 per square meter. Everyone has an income of at least $5,000. What is the Pareto efficient size for the town skating rink?

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The Answer of Just north of the town of Muskrat, Ontario, is the town of Brass Monkey, population 6,400. Brass Monkey, like Muskrat, has a single public good, the town skating rink, and a single private good, Labatt Ale. Everyone's utility function is U_i(X_i, Y) = X_i - , where X_i is the number of bottles of ale consumed by i and Y is the size of the skating rink in square meters. The price of ale is $1 per bottle. The cost of the skating rink to the city is $4 per square meter. Everyone has an income of at least $5,000. What is the Pareto efficient size for the town skating rink?

Just North of the Town of Muskrat, Ontario, Is the Town