Now, we still have Paul and Scott paid for cigarettes and policemen However, since they now live together, the cigarettes become a public good as they can enjoy the smoke in the air So the utility function changes to U 4log(X) 2log(M), where X and M are total cigarettes and total policemen i e , X XP XS,M MP MS Assume their income is still 100 , and the price of both cigarettes and a policeman is 1 1 How many cigarettes and policemen will be paid by each of them if they independently make decision 2 To achieve social optimal, is it necessary for them to consume equally on M or X Now, we still have Paul and Scott paid for cigarettes and policemen However, since they now live together, the cigarettes become a public good as they can enjoy the smoke in the air So the utility function changes to U 4log(X) 2log(M), where X and M are total cigarettes and total policemen i e , X XP XS,M MP MS Assume their income is still 100 , and the price of both cigarettes and a policeman is 1 1 How many cigarettes and policemen will be paid by each of them if they independently make decision 2 To achieve social optimal, is it necessary for them to consume equally on M or X

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Now, we still have Paul and Scott paid for cigarettes and policemen  However, since they now live together, the cigarettes become a public good as they can enjoy the smoke in the air  So the utility function changes to U 4log(X) 2log(M), where X and M are total cigarettes and total policemen  i e , X XP XS,M MP MS  Assume their income is still 100 , and the price of both cigarettes and a policeman is 1   1  How many cigarettes and policemen will be paid by each of them if they independently make decision  2  To achieve social optimal, is it necessary for them to consume equally on M or X   Now, we still have Paul and Scott paid for cigarettes and policemen  However, since they now live together, the cigarettes become a public good as they can enjoy the smoke in the air  So the utility function changes to U 4log(X) 2log(M), where X and M are total cigarettes and total policemen  i e , X XP XS,M MP MS  Assume their income is still 100 , and the price of both cigarettes and a policeman is 1   1  How many cigarettes and policemen will be paid by each of them if they independently make decision  2  To achieve social optimal, is it necessary for them to consume equally on M or X

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Now, we still have Paul and Scott paid for cigarettes and policemen. However, since they now live together, the cigarettes become a public good as

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