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Part 1. Samuelson Rule with heterogeneous users: Consider o non-congestible public good with Total Cost of production equal to TC(G) = 800 + 36007, There
Part 1. Samuelson Rule with heterogeneous users: Consider o non-congestible public good with Total Cost of production equal to TC(G) = 800 + 36007, There are two types of users of the public good, A and B Each individoal nser has a Total Benefit of using the public gnod equal to T = 8067 267 or THY = 646G 4%, depending on their type. Assume that there are N of each type. For example, if N = 2, then there are 4 people total: 2 type A and 2 type B, . What type of person has a higher value of the public good, type A or type BY (1 point, no explanation required) () Type A () Type B ) It depends on how much of the public good is provided . Write the efficient quantity of the public good, denoted 7 as a function of N. (Do simplify the equation.) (1 point) Answer: . What is the efficient quantity of the public good if N=37 If N=57 If N=&7 {1 point) Answer if N=: |:| Answer if N=h: |:| Answer if N=6: 4. What is the total social surplus if the efficient quantity of the public good is provided and N=57 Recall that the total benefit of the public good will be equal to the total benefit for each user for that given level of the public good, summed up over all the users? (1 point)
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