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Goods 4. Suppose that consumers have income M, preferences represented by U = x + 5logG n, and the public good produced with cost function
Goods 4. Suppose that consumers have income M, preferences represented by U = x + 5logG n, and the public good produced with cost function C(G) = G. a. Show that the utility-maximizing membership is n = 5 with provision = 25. b. Prove thatif G is chosen optimally given, utility as a function of n is U=M +10log(n) 2n
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