1. There are three consumers of a public good whose demands are: a) P1= 50 - Q b) P2=75-Q c) P3= 100-Q Where Q gives the units of the good and P gives the price. The marginal cost of the public good is given at $175. 1. What is the optimal provision of the public good? Draw the graph.

1. There are three consumers of a public good whose demands are: a) P1= 50 - Q b) P2=75-Q c) P3= 100-Q Where Q gives the units of the good and P gives the price. The marginal cost of the public good is given at $175. 1. What is the optimal provision of the public good? Draw the graph.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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