2. Public Goods Provision. Consider three consumers indexed by i ?{1,2,3) with the following demand functions for a public good G. p1=20-1/10G, p2=20-1/10G, p3=30-2/10GWhere p1is the price consumer i...


2. Public Goods Provision. Consider three consumers indexed by i ?{1,2,3) with the following demand functions for a public good G. p1=20-1/10G, p2=20-1/10G, p3=30-2/10GWhere p1is the price consumer i is willing to pay for a quantity of Ga. If marginal cost is 70, what is the optimum level of public good?b. If marginal cost is 20, what is the equilibrium level of public good provided by the market?(you need to vertically sum the demand curves here)

May 15, 2022
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