Question
1.Individual A and B have the following marginal benefits for private good X: MB A =10=X A , MB B =10-X B While the cost
1.Individual A and B have the following marginal benefits for private good X: MB A =10=X A , MB B =10-X B
While the cost of producing each unit is 2 dollars (i.e., MC=2).
You are asked to:
a.On a graph, find the market demand function for private good X.
b.Find the market equilibrium.
c. Find consumer A quantity demanded, and consumer B quantity demanded.
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Q1 PA 10XA PB 10XB Market demand Cu...
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
