The following table shows how the marginal benefit of a service varies for five consumers. Quantity Serkan Asuman Bahar Murat 1 150 125 100 200 600 Derive the demand curve for this service assuming 2 125 100 75 150 400 3 100 75 50 125 200 Meriç 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?

Economics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
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The following table shows how the marginal
benefit of a service varies for five consumers.
Quantity
Serkan
Asuman
Bahar
1
150
125
100
200
600
Derive the demand curve for this service assuming
2
125
100
75
150
400
3
100
75
50
125
200
Murat
Meriç
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?
Transcribed Image Text:The following table shows how the marginal benefit of a service varies for five consumers. Quantity Serkan Asuman Bahar 1 150 125 100 200 600 Derive the demand curve for this service assuming 2 125 100 75 150 400 3 100 75 50 125 200 Murat Meriç 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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