Consider two consumers with the following demand functions for a public good. P1 = 10 - 0.1G P2 = 20 - 0.1G where P1 is the price that person 1 is willing to pay for quantity G and P2 is the price that person 2 is willing to pay for quantity G What is the optimal level of the public good if the marginal cost of the public good is Ksh. 25. What is the total cost of producing the optimal quantity how much does each person contribute towards the cost
Consider two consumers with the following demand functions for a public good. P1 = 10 - 0.1G P2 = 20 - 0.1G where P1 is the price that person 1 is willing to pay for quantity G and P2 is the price that person 2 is willing to pay for quantity G What is the optimal level of the public good if the marginal cost of the public good is Ksh. 25. What is the total cost of producing the optimal quantity how much does each person contribute towards the cost
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider two consumers with the following
P1 = 10 - 0.1G
P2 = 20 - 0.1G
where P1 is the
- What is the optimal level of the public good if the marginal cost of the public good is Ksh. 25.
- What is the total cost of producing the optimal quantity
- how much does each person contribute towards the cost
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