In a community of 100 individuals every individual’s demand curve for a public good is Q=16-9p, where Q is the quantity
Posted: Mon Apr 25, 2022 8:13 am
In a community of 100 individuals every individual’s demand
curve for a public good is Q=16-9p, where Q is the quantity of the
good, while p is its (tax) price. The marginal cost of producing
the good is 35. Calculate the socially optimal amount of the public
good.
I would appreciate the help
curve for a public good is Q=16-9p, where Q is the quantity of the
good, while p is its (tax) price. The marginal cost of producing
the good is 35. Calculate the socially optimal amount of the public
good.
I would appreciate the help