Microeconomics: Principles, Applications, and Tools (8th Edition)

by O'Sullivan, Arthur; Sheffrin, Steven; Perez, Stephen

Published by Prentice Hall

ISBN 10: 0-13294-886-9

ISBN 13: 978-0-13294-886-9

Chapter 15 - Public Goods and Public Choice - Exercises - 15.3 Public Choice and the Median Voter - Page 354: 3.7b

Answer

Yes, Lefty has an incentive

Work Step by Step

People do not want to walk more than 1/4 mile. Therefore, when placed at 1/4 mile, all the customers from 0 to 1/4 mile will buy from him, plus a part of the customers from 1/4 to 1/2 mile.

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