Consider three consumers indexed by i ={1,2,3} with the following demand functions for a pu good G: 20 -G, P2 = 5 -G, P3 = 20 - G 20 10 a. If marginal cost is constant at $15, what is the private provision of public goods? b. If marginal cost is constant at $15, what is the optimal level of public good?
Consider three consumers indexed by i ={1,2,3} with the following demand functions for a pu good G: 20 -G, P2 = 5 -G, P3 = 20 - G 20 10 a. If marginal cost is constant at $15, what is the private provision of public goods? b. If marginal cost is constant at $15, what is the optimal level of public good?
Chapter1: Making Economics Decisions
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![Consider three consumers indexed by i ={1,2,3} with the following demand functions for a public
good G:
1
P = 20 -G, P= 5-
-G, P = 20 -
G
10
20
a. If marginal cost is constant at $15, what is the private provision of public goods?
b. If marginal cost is constant at $15, what is the optimal level of public good?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84ba59e3-1475-460d-a42e-f9e1c946907d%2Fb379d34e-0825-4270-9a89-d2649913a324%2F7pv1d13_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider three consumers indexed by i ={1,2,3} with the following demand functions for a public
good G:
1
P = 20 -G, P= 5-
-G, P = 20 -
G
10
20
a. If marginal cost is constant at $15, what is the private provision of public goods?
b. If marginal cost is constant at $15, what is the optimal level of public good?
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