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Let Joe and Ry be two citizens of a society whose private marginal benefit func- tions for a public good (in $) are given by
Let Joe and Ry be two citizens of a society whose private marginal benefit func- tions for a public good (in $) are given by DJ = 100 .5Q DR = 200 .5Q respectively. Find the equation for the aggregate social marginal benefit curve for the public good and draw the three marginal benefit curves. If the marginal cost of providing a unit of the public good is $6.00, what is the socially optimal level of Q, and what are the Lindahl tax prices for each citizen?
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