f the lighthouse is still considered a public good, what is the value to this society of the third
unit of output of the lighthouse?
f. Suppose the supply curve is perfectly elastic at $11, that is, P = 11. If the provision of the
lighthouse services is left to the private market, what Q will result? If the lighthouse services
are a public good, what is the socially optimal Q? Comment on your finding in light of public
finance theory.