Society is made up of two individuals, Bert and Ernie, whose demands for public good A are given in the figure on the right. Bert's demand is: o = 50 – 2.0PA Ernie's demand is: of = 50 – 1.0PA Assume that the public good can be produced at a constant marginal cost of $10.

Society is made up of two individuals, Bert and Ernie, whose demands for public good A are given in the figure on the right. Bert's demand is: o = 50 – 2.0PA Ernie's demand is: of = 50 – 1.0PA Assume that the public good can be produced at a constant marginal cost of $10.

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

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optimal level 43

bert 4 dolars and emily 7 dolars

Please explain

Society is made up of two individuals, Bert and Ernie, whose demands for public
good Á are given in the figure on the right.
110-
105-
100-
95-
90-
85-
80-
75-
70-
65-
60-
55-DE
50-
45-
40-
35-
30-DE
25-
20-
15-
10-
5-
0-
Bert's demand is:
Q = 50 - 2.0PA
Ernie's demand is:
of = 50 – 1.0PA
Assume that the public good can be produced at a constant marginal cost of $10.
The optimal level of output is 43 units. (Round your response to the nearest
integer.)
You would charge Bert S per unit and Ernie $ per unit. (Round your
responses to the nearest integer.)
10
20
30
40
50
60
70
80
Units of output, QA
Price ($)
3322N1

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