Page 1 of 1
2. The cost of the provision of the pure public good X is 65 (and constant) per unit. Following the marginal benefits fo
Posted: Sat Mar 19, 2022 5:49 pm
by answerhappygod
- 2 The Cost Of The Provision Of The Pure Public Good X Is 65 And Constant Per Unit Following The Marginal Benefits Fo 1 (35.21 KiB) Viewed 54 times
2. The cost of the provision of the pure public good X is 65 (and constant) per unit. Following the marginal benefits for the 5 residents of a community at each quantity of X Quantity of X Resident 1 2 3 4 А 4 3 2 1 B 2 0 0 с 2 0 0 D 2 1 0 0 E 0 0 0 0 Note: cach cell represents cachen's ma honefiven the quantity of X find: the equilibrium under the Lindahl allocation (that is, each consumer pays his/her marginal benefit or willingness to pay). b. Assume now that X is a pure private good with exactly the same MSC = $6 as before. Describe the equilibrium quantity. Explain who will buy X, if anyone.