There are three consumers of a public good. Their individual demands are as follows: P1 = 50 – G P2 = 110 – G Ps = 150 – G, where G measures the number of units of the good and p; is the price in dollars. MSC of the public good is $190 per unit. 1rWhat is the optimal level of provision of the public good according to the Samuelson condition?

There are three consumers of a public good. Their individual demands are as follows: P1 = 50 – G P2 = 110 – G Ps = 150 – G, where G measures the number of units of the good and p; is the price in dollars. MSC of the public good is $190 per unit. 1rWhat is the optimal level of provision of the public good according to the Samuelson condition?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter27: Markets And Government

Section: Chapter Questions

Problem 5E

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