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1. Cindy and Dan share a pure public good G and consume a private good x. Both have preferences U(x,G) = In(x) + 2ln(G), while
1. Cindy and Dan share a pure public good G and consume a private good x. Both have preferences U(x,G) = In(x) + 2ln(G), while Cindy has income y and Dan has income yD. Both x and G have a price of 1. a. Derive the Pareto efficient level of G. b. Derive the share of the Pareto efficient level of G that Cindy would pay under the Lindahl benefit tax equilibrium. c. Provide an intuition for this share
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