Society is made up of two individuals, Bert and Ernie, whose demands for public good A are
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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?
Figure 1
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Mylab Economics With Pearson Access Code For Principles Of Microeconomics
ISBN: 9780135197141,9780135197103
13th Edition
Authors: Karl E. Case; Ray C. Fair; Sharon E. Oster
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