1.Society is made up of two individuals, Bert and Ernie, whose demands for public good A are given in Figure 1 . Assuming that the public good can be produced at a constant marginal cost of $7, what is the optimal level of output? How much would you charge Bert and Ernie?

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Price ($) 10 Price (S) 25 25 Bert's Demand DB 50 Q=50-2 P Ernie's Demand 50 DE 0-50-5 PA