a public good, are two consumers, A B, who margina benefit curves are shown below. In the same diagram, the marginal cost curv for G is also shown. Based on the diagram, the Pareto optimal level of G is units. 12 11 10 9 1 1 2 3 5 MBA 7 6 8 MBB 9 MC 10 11 12 13 G

Economics: Private and Public Choice (MindTap Course List)
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Chapter5: Difficult Cases For The Market And The Role Of Government
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Consider a public good, G. There are two consumers, A and B, wnose marginal
benefit curves are shown below. In the same diagram, the marginal cost curve
for G is also shown. Based on the diagram, the Pareto optimal level of G is
units.
12
11
10
9
8
7
6
5
4
3
2
1
1
2
5
MBA
6 7
MBB
9
8
MC
10
11
12
13 G
Transcribed Image Text:Consider a public good, G. There are two consumers, A and B, wnose marginal benefit curves are shown below. In the same diagram, the marginal cost curve for G is also shown. Based on the diagram, the Pareto optimal level of G is units. 12 11 10 9 8 7 6 5 4 3 2 1 1 2 5 MBA 6 7 MBB 9 8 MC 10 11 12 13 G
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