Answer the question based on the following information for a public good. Pa and Pb are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. Q 1 2 3 4 5 Pa $3 2 1 0 0 Pb $5 4 3 2 1 If the marginal cost of producing this good at the optimal quantity is $4, the optimal quantity must be
Answer the question based on the following information for a public good. Pa and Pb are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. Q 1 2 3 4 5 Pa $3 2 1 0 0 Pb $5 4 3 2 1 If the marginal cost of producing this good at the optimal quantity is $4, the optimal quantity must be
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 40P: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in...
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