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fIn the following diagram, the long-run supply curve (SLR) for a pure public good is drawn along with Casey's demand (Dc) and Daniel's demand (DD).
\fIn the following diagram, the long-run supply curve (SLR) for a pure public good is drawn along with Casey's demand (Dc) and Daniel's demand (DD). 1. A pure public good is non-rival in consumption and non-excludable. Draw the social marginal benefit (SMBG) curve for this pure public good. 2. The efficient provision level of the pure public good is Q* = 3. Suppose that individual tax prices were assessed for Casey and Daniel that would cause them to both want the efficient provision level of the public good. Casey's tax price would be PC = while Daniel's tax price would be PD = 4. Suppose that technological and social change caused the pure public good to become a rival and excludable good. Draw the social marginal benefit curve for this pure private good (SMBQ). 5. The perfectly competitive market equilibrium for this pure private good would have a price of PE = and a quantity of QE =
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