There are three demanders of a public good. Their demands are given by: P₁ = 60-Q P₂ = 100 - Q P3= 140-Q (a) (b) (c) Suppose the marginal cost of providing the public good is $180. What is the economically efficient level of production for the good? Of the three consumers, who would be willing to pay for this public good? Show this on a graph. Suppose the marginal cost of providing the public good is $60. What is the economically efficient level of production for the good? Of the three consumers, who would be willing to pay for this public good? Show this on a graph. Suppose the marginal cost of providing the public good is $350. What is the economically efficient level of production for the good? Of the three consumers, who would be willing to pay for this public good? Show this on a graph.

There are three demanders of a public good. Their demands are given by: P₁ = 60-Q P₂ = 100 - Q P3= 140-Q (a) (b) (c) Suppose the marginal cost of providing the public good is $180. What is the economically efficient level of production for the good? Of the three consumers, who would be willing to pay for this public good? Show this on a graph. Suppose the marginal cost of providing the public good is $60. What is the economically efficient level of production for the good? Of the three consumers, who would be willing to pay for this public good? Show this on a graph. Suppose the marginal cost of providing the public good is $350. What is the economically efficient level of production for the good? Of the three consumers, who would be willing to pay for this public good? Show this on a graph.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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