Two consumers, M and N, have the following demand curves M: PM= 24 – 2*Q N: PN = 48 – 4*Q Where Pmand Pn represent margi

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Two Consumers M And N Have The Following Demand Curves M Pm 24 2 Q N Pn 48 4 Q Where Pmand Pn Represent Margi 1 (36.61 KiB) Viewed 88 times

Two consumers, M and N, have the following demand curves M: PM= 24 – 2*Q N: PN = 48 – 4*Q Where Pmand Pn represent marginal willingness-to-pay values for M and N respectively. Q represents the quantity of output. (a) If M and N are the only consumers in the market and the product is a public good, obtain the market social benefit equation. Draw the two individual private benefits and the marginal social benefit curves in the same diagram. (b) If M and N are the only consumers in the market and the product is a private good, obtain the market demand equation.