Homework Help

Business
Economics
p s 50 45 40 35 25 20 15 10...

Question: p s 50 45 40 35 25 20 15 10...

Question details

P (S) 50 45 40 35 25 20 15 10 o 20 30 40 50 60 70 80 90 100 110 120 130 140 15o -5 -10 Suppose that there are 5 people with identical preferences around a pure public good. For each individual (i e (1,2,3, 4, 5)) the Private Marginal Benefit (PMB.) from a pure public good is given by PMB, 10-0.1G, where G is the quantity of the pure public good. 1. Draw the Private Marginal Benefit curve for a typical individual and label it PMB, 2. Draw the Social Marginal Benefit curve from the pure public good and label it SMB. 3. Suppose that the marginal cost of providing the pure public good is a constant $15. Draw the social marginal cost curve and label it SMC. 4. The optimal level of the public good is G 5. A pure public good is non-excludable. How much of the pure public good will be . (be precise) provided by the private marketplace? GF-

Solution by an expert tutor

Blurred Solution

This question has been solved

Subscribe to see this solution