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There are two residents in a town, A and B . resident A has a demand for fireworks, of Q = 40-4P, and resident B has a demand of fireworks: Q= 20-2P....
There are two residents in a town, A and B . resident A has a demand for fireworks, of Q = 40-4P, and resident B has a demand of fireworks: Q= 20-2P. The cost of each firework is $3. Fireworks are public goods.
What is the private and social optimum of fireworks for the town?
Please also briefly tell the difference between private optimum and social optimum.