A donor's marginal benefit from a public good is MB=53-0.3G-0.75g, where G is the level of the public good and g is her individual contribution. How much would she contribute to the public good if a philanthropist contributes 50 and then others also contribute 47? Assume that her marginal cost of giving is 15.5.

A donor's marginal benefit from a public good is MB=53-0.3G-0.75g, where G is the level of the public good and g is her individual contribution. How much would she contribute to the public good if a philanthropist contributes 50 and then others also contribute 47? Assume that her marginal cost of giving is 15.5.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter16: Public Goods And Public Choice

Section: Chapter Questions

Problem 1.1P: (Optimal Provision of Public Goods) Using at least two individual consumers, show how the market...

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