Consider a community with ten individuals. Individuals have a budget of 20 dollars. Each individual can either spend mon
Posted: Wed Apr 27, 2022 11:47 am
- Consider A Community With Ten Individuals Individuals Have A Budget Of 20 Dollars Each Individual Can Either Spend Mon 1 (26.11 KiB) Viewed 32 times
Consider a community with ten individuals. Individuals have a budget of 20 dollars. Each individual can either spend money on police (P) or private consumption (c). has the utility function U (C,P) = Ci +In(P) where P= Ep. This means Pis a public good. If the price of police are 20, and the price of consumption is 2. What is the total amount of police employed across all 10 individuals?
Consider the same community. Base on the Samuelson condition, what is the optimal number of police.