There are three consumers L, R, and C. The marginal willingness to pay for a unit of flowers (placed in the public park) of L, R and C, respectively, are: 100-8F, 100-15F, and 100-7F dollars. If the marginal cost of flowers is constant at $90 per unit, then what is the efficient number of flowers to place in the square? Be sure to explain what you are doing and why. (10 points)
Determine the Lindahl equilibrium. (5 points)
Suppose the $90 cost per unit of the flowers is shared equally among the three voters. What quantity of flowers would win a majority rule election under the Median Voter Theorem? Explain. (10 points)