Question
2. Anne, Bruce and Colin each value police protection differently. Anne's demand for units of the public good is Q = 80-10P; Bruce's demand is
2. Anne, Bruce and Colin each value police protection differently. Anne's demand for units of the public good is Q = 80-10P; Bruce's demand is Q = 150 - 25P; and Colin's demand is Q = 200 - 20P. If the marginal cost of providing police protection is $20, what is the efficient level of police protection and what would the share of the tax burden for each of them under Lindahl pricing?
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Technical Change, Relative Prices, And Environmental Resource Evaluation
Authors: V Kerry Smith
1st Edition
1317358570, 9781317358572
