following table shows how the marginal benefit of a service varies for five consumers. Quantity 1 2 3 4 Serkan 150 125 100 75 Asuman 125 100 75 50 Bahar 100 75 50 25 Murat 200 150 125 125 Meriç 600 400 200 150 Derive the demand curve for this service assuming that it is a public good. If marginal cost of the good is 850, what is the efficient output of the public good? If marginal cost of the good is 425, what is the efficient output of the public good? If marginal cost of the good is 850, what is the efficient output assuming it is private good?
following table shows how the marginal benefit of a service varies for five consumers. Quantity 1 2 3 4 Serkan 150 125 100 75 Asuman 125 100 75 50 Bahar 100 75 50 25 Murat 200 150 125 125 Meriç 600 400 200 150 Derive the demand curve for this service assuming that it is a public good. If marginal cost of the good is 850, what is the efficient output of the public good? If marginal cost of the good is 425, what is the efficient output of the public good? If marginal cost of the good is 850, what is the efficient output assuming it is private good?
Essentials of Economics (MindTap Course List)
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Chapter10: Externalities
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- The following table shows how the marginal benefit of a service varies for five consumers.
Quantity |
1 |
2 |
3 |
4 |
Serkan |
150 |
125 |
100 |
75 |
Asuman |
125 |
100 |
75 |
50 |
Bahar |
100 |
75 |
50 |
25 |
Murat |
200 |
150 |
125 |
125 |
Meriç |
600 |
400 |
200 |
150 |
- Derive the demand curve for this service assuming that it is a public good.
- If marginal cost of the good is 850, what is the efficient output of the public good?
- If marginal cost of the good is 425, what is the efficient output of the public good?
- If marginal cost of the good is 850, what is the efficient output assuming it is private good?
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