Utility = (x,y)² the individual's share of private good production (=x/100). Notice that the exclusive and that everyone benefits equally from its level of production. e market for x and y were perfectly competitive, what levels of those good ld be produced? What would the typical individual's utility be in this situa at are the optimal production levels for x and y? What would the typical vidual's utility level be? (Hint: The numbers in this problem do not come aly, and some approximations should suffice.)

Utility = (x,y)² the individual's share of private good production (=x/100). Notice that the exclusive and that everyone benefits equally from its level of production. e market for x and y were perfectly competitive, what levels of those good ld be produced? What would the typical individual's utility be in this situa at are the optimal production levels for x and y? What would the typical vidual's utility level be? (Hint: The numbers in this problem do not come aly, and some approximations should suffice.)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter19: Externalities And Public Goods

Section: Chapter Questions

Problem 19.7P

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