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In what textbook or online study help sites can i learn the stuff this problem set requires ? thanks! Problem Set 3 1. There are

In what textbook or online study help sites can i learn the stuff this problem set requires ?

thanks!

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Problem Set 3 1. There are two consumers, 1 and 2, and one rm. There is one private good, :17, and one public good, 2. The price of good a: is pa, = 1. Let 1),, denote the price of the public good. Consumer i's preferences are given by \"dz-(mi, z) = 1:,- + ln(zl + Z2). Consumer i's income is w,- = 10. Here 3:,- and 2,- denote, respectively, the quantities of the private and the public good purchased by agent i. The total amount of public good consumed by the agents is z = 21 + 22. The rm's cost of supplying 2 units of the public good is (2(2) 2 z2. (a) Solve for the competitive equilibrium in the market for the public good. That is, nd the equilibrium price p: and the aggregate equi- librium quantity z* of the public good. What are Z1 and 22 in equi- librium? (b) Represent the competitive equilibrium graphically. (c) Is 25* inefcient? If so, Why? What is the eicient allocation of the public good? Represent it graphically. What is the deadweight loss at the competitive equilibrium? (d) Show that there is a subsidy s,- to each consumer 2' that implements the Pareto eicient level of z. (e) HOW does the analysis change if the rm is a monopolist? 2. Same as 2 with the following utility functions: in (1:1, 2) = 1:1 +2 ln(zl+22) and 712(332, z) = 1:2 + ln(zl + 22)

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