Buyer 1: 1000-1/2q Buyer 2: 500-1/4q -If the pmc of the public good is 1200, what is the privately and socially optimpal level of public good provided? Calculate the value of deadwheight loss
Buyer 1: 1000-1/2q Buyer 2: 500-1/4q -If the pmc of the public good is 1200, what is the privately and socially optimpal level of public good provided? Calculate the value of deadwheight loss
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section11.2: Public Goods
Problem 2QQ
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Buyer 1: 1000-1/2q
Buyer 2: 500-1/4q
-If the pmc of the public good is 1200, what is the privately and socially optimpal level of public good provided?
Calculate the value of deadwheight loss
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