Assume that the social marginal benefit of a public good is SMB = 24 – 1.6 · Q and the marginal cost (MC) of providing the good is MC = 16. What quantity Q of the good is optimal in the case described?
Assume that the social marginal benefit of a public good is SMB = 24 – 1.6 · Q and the marginal cost (MC) of providing the good is MC = 16. What quantity Q of the good is optimal in the case described?
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 6QFR
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