6. Public good: (a) Find all of the duality relationships for the following problem: Maximize: U = x¾ Q Subject to: m = px where x represents the total of market traded goods, Q is a public good, m is the available budget, and p is the price of the market traded good x. (b) Let p = 1 and U= 100. Find the marginal willingness to pay (WTP) function.

6. Public good: (a) Find all of the duality relationships for the following problem: Maximize: U = x¾ Q Subject to: m = px where x represents the total of market traded goods, Q is a public good, m is the available budget, and p is the price of the market traded good x. (b) Let p = 1 and U= 100. Find the marginal willingness to pay (WTP) function.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 2PA

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