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2. Fireworks In the Park: Aggregating Demand for Public Goods Consider the following marginal benet (demand) curves of two individuals for a certain good: MBA(q)

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2. Fireworks In the Park: Aggregating Demand for Public Goods Consider the following marginal benet (demand) curves of two individuals for a certain good: MBA(q) = 100 q and MBB(q) = 300 q. First assume this is a private (rival) good, such as Crispy Tofu. a) Find the Aggregate demand curve for Crispy Tofu. Hints: qn+n = qn + qn, draw both curves on a graph to visualize them better (optional). From now on assume this is a public (nonrival) good, such as Fireworks in the Park. b) Find the Aggregate demand curve for Fireworks in The Park (Marginal Social Benet curve). Hints: MSB = MBA+B = MBA + MBB, draw both curves on a graph to visualize them better (optional). c) Assuming no cooperation between person A and B, who will provide the good and who will free ride? Consider the Marginal Private Costs of providing Fireworks in The Park, MC(q) = 50 + q. d) Find q\

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