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The table below provides information on the prices Lewis and Mills are willing to pay for various quantities of a public good. These two people

The table below provides information on the prices Lewis and Mills are willing to pay for various quantities of a public good. These two people are the only members of society. Determine the price that society is willing to pay for the public good at each quantity of output.


Lewis

Mills

Society

P

Q d

P

Q d

P

Q d

$4.00

1

$4.00

0

$

1

3.50

2

3.50

0

2

3.00

3

3.00

0

3

2.50

4

2.50

0

4

2.00

5

2.00

1

5

1.50

6

1.50

2

6

1.00

7

1.00

3

7

0.50

8

0.50

4

8


If the government’s marginal cost of providing this public good is constant at $5, how many units of the public good should government provide?

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