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:
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.
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