There are three consumers of a public good. Their individual demands are as follows: P1 = 50 – G P2 = 110 – G Ps = 150 – G, where G measures the number of units of the good and p; is the price in dollars. MSC of the public good is $190 per unit. 1rWhat is the optimal level of provision of the public good according to the Samuelson condition?

There are three consumers of a public good. Their individual demands are as follows: P1 = 50 – G P2 = 110 – G Ps = 150 – G, where G measures the number of units of the good and p; is the price in dollars. MSC of the public good is $190 per unit. 1rWhat is the optimal level of provision of the public good according to the Samuelson condition?

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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