3. Consider an economy with n consumers. The utility function of each consumeri is U; = 2log(x:) + log(G³) and her income is $100. r; is the private good andtotal public good G = E, 9i while g is symmetric and price of each unit ofpublic good and private good is $1. Calculate the private provision of publicgood equilibrium.4. Consider an economy with population N. There is a club which is providinga level of provision G. When the cost of the club is shared equally and paidby members as a membership fee, the obtain utility is: U; = (1/2)log(G²) –(n2 /2d) + M – (G/n), where M is the individual income and d > 0 is a positiveconstant. If the utility of each member is maximized, what is the optimal levelof membership, n, for the club?

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3. Consider an economy with n consumers. The utility function of each consumer i is U₂ = 2log(x;) + log(G³) and her income is $100. z; is the private good and total public good G = Σ²₁ 9i while g is symmetric and price of each unit of public good and private good is $1. Calculate the private provision of public good equilibrium.

3. Consider an economy with n consumers. The utility function of each consumer i is U₂ = 2log(x;) + log(G³) and her income is $100. z; is the private good and total public good G = Σ²₁ 9i while g is symmetric and price of each unit of public good and private good is $1. Calculate the private provision of public good equilibrium.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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