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a. How does a public good differ from a club good (aka quasi-public good)? b. Give an example of each type of good. c. Explain
a. How does a public good differ from a club good (aka quasi-public good)? b. Give an example of each type of good. c. Explain why it is much harder to determine the optimal quantity of public goods than to determine the optimal quantity of club goods.P Q Revenue Marginal Revenue $12 0 $11 20 $10 40 $9 60 $8 80 $7 100 $6 120 a) Fill in the numbers for revenue and marginal revenue. (you can copy and paste the table into your answer) b) If their marginal cost of production is $4 per burrito, what price will they choose and how many burritos will they sell to maximize profit? c) Their fixed costs are $100/day. What is the profit at the price and quantity you chose in part b). d) Do you think this market is in the long run. Why or why not?a. Give an example of direct price discrimination. b. Give an example of indirect price discrimination. c. Will firms have to worry about reselling by customers who get the discount in either of your examples above. Why or why not
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