. Consider three consumers indexed by i ={1,2,3} with the following demand functions for a publicgood G:1P = 20 -G, P= 5--G, P = 20 -G1020a. If marginal cost is constant at $15, what is the private provision of public goods?b. If marginal cost is constant at $15, what is the optimal level of public good?

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Consider three consumers indexed by i ={1,2,3} with the following demand functions for a pu good G: 20 -G, P2 = 5 -G, P3 = 20 - G 20 10 a. If marginal cost is constant at $15, what is the private provision of public goods? b. If marginal cost is constant at $15, what is the optimal level of public good?

Consider three consumers indexed by i ={1,2,3} with the following demand functions for a pu good G: 20 -G, P2 = 5 -G, P3 = 20 - G 20 10 a. If marginal cost is constant at $15, what is the private provision of public goods? b. If marginal cost is constant at $15, what is the optimal level of public good?

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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