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Let there beconsumers all with the same utility functionand the same income of 1. The price of the private goodand the public goodare both 1.
Let there beconsumers all with the same utility functionand the same income of 1. The price of the private goodand the public goodare both 1.
a.Calculate the private equilibrium (Competitive equilibrium)
b.Find the social optimum for the welfare function.
c.Comment on the effect of changingon the contrast between the equilibrium and the optimum.
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