Consider a public good, G, that is shared by Consumer A and B. Each can purchase G at the price of $20 per unit. A's marginal benefit from this public good is given by MBA=50-G. If A thinks B is getting 10 units of G, then A's optimal contribution into G will be ? units. On the other hand, if A thinks B is getting 25 units of G, then A's will be optimal contribution into G will be ?units
Consider a public good, G, that is shared by Consumer A and B. Each can purchase G at the price of $20 per unit. A's marginal benefit from this public good is given by MBA=50-G. If A thinks B is getting 10 units of G, then A's optimal contribution into G will be ? units. On the other hand, if A thinks B is getting 25 units of G, then A's will be optimal contribution into G will be ?units
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a public good, G, that is shared by Consumer A and B. Each can purchase G at the
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