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What is Calculation about?

The socially optimal level of police protection is determined to be approximately 125.71 units, with Aye Aye and Chan Chan having positive marginal benefits. Under Lindahl pricing, Aye Aye pays 53.57% of the tax burden, while Chan Chan pays 46.43%, and Bo Bo does not contribute as his marginal benefit is negative. The marginal cost of providing police protection is $8.

Author

Htet Yee Mon Oo

Language

EN