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A company is considering building a bridge across a river. The...

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A company is considering building a bridge across a river. The...

A company is considering building a bridge across a river. The bridge would cost $350,000 to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge:

Screenshot 2022-10-24 134654.png

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Price Quantity (Dollars per crossing) (Thousands of crossings) 4.00 O 3.50 40 3.00 80 2.50 120 2.00 160 1.50 200 1.00 240 0.50 280 0 320...

 

If the company were to build the bridge, its profit-maximizing price would be

 

, and it    produce the efficient level of output.

 

If the company is interested in maximizing profit, it    build the bridge because profit would be

 

. (Note: If the company incurs a loss, be sure to enter a negative number for profit.)

 

If the government were to build the bridge, it should charge a price of

 

.

 

True or False: The government should build the bridge.

 

True

False

 

 

 

 

 

 

 

 

Answer & Explanation

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Answered by EconTutor07 on coursehero.com
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