Question
A donor's marginal benefit from a public good is MB=53-0.3G-0.75g, where G is the level of the public good and g is her individual contribution.
A donor's marginal benefit from a public good is MB=53-0.3G-0.75g, where G is the level of the public good and g is her individual contribution. How much would she contribute to the public good if a philanthropist contributes 50 and then others also contribute 47? Assume that her marginal cost of giving is 15.5.
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International Money and Finance
Authors: Michael Melvin, Stefan C. Norrbin
8th edition
978-8131234136, 123852471, 978-0123852472
