Each year around July 4 the town of Flagston has a controversy over how big a fireworks display they should have on the holiday. The three citizens have the demand functions for fireworks that are shown here. The cost per firecracker is $18. Elmer has the demand function P = 20 - Q. Ethel's demand equation is P = 12 - .6Q, and Edith has the demand P = 8 - .4Q.What is the total community demand equation for the fireworks display?
What will be an ideal response?
The vertical summation of the individual demands is P = 40 - 2Q.
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Exhibit 6-15 Long-run average cost
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