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

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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 

  1. What is the optimal level of the public good if the marginal cost of the public good is Ksh. 25.
  2. What is the total cost  of producing the optimal quantity
  3. how much does each person contribute towards the cost
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