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Explain clearly $ points First consider a public good of value to Ann and Bob with the property that the value of the good can
Explain clearly
$ points First consider a public good of value to Ann and Bob with the property that the value of the good can be expressed in monetary torms, In this cade, the Samuchon condition states Suicide efficient level of the good is determined by AFV + AV. = P where p is the per unit price of the good, and, for example. MrV 19 Ann's marginal value of the good, Now consider a pubic good of value to Ann and Bob, the value of which CANNOT be expressed in monetary forms, in this case O a. The price must be replaced with a relative price, and the marginal values must be replaced with the corresponding Marginal Rates of Substitution. O b. The Samuelson condition is of no use because we cannot compare Ann unity to Bob's. O c, We need more information before we can know how to modify the Samuelson condition. O'd. The Samuleson condition continues to work as in the case where values CAN be grpressed in monetary termsStep by Step Solution
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