Randwick is divided in three districts. In District 1, the demand for bike paths, a public good, is given by Q = 21.2 - P, where Q is expressed in kilometres and P in Australian dollars. In District...

Extracted text: Randwick is divided in three districts. In District 1, the demand for bike paths, a public good, is given by Q = 21.2 - P, where Q is expressed in kilometres and P in Australian dollars. In District 2, demand is Q = 33 - P. In District 3, the demand is Q = 51.4 - P. The marginal cost of building a bike path is MC = 3.25. Find the socially optimal quantity, Q*. Now suppose that bike paths are a rival and excludable good. Under this assumption, find the new socially optimal quantity, Q°. What is the difference between quantities Q® and Q*, i.e. Q8-Q* ? [only write this value in the answer box below] Answer: