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Problem 2 [5] : There are three consumers of a public good. The demands for consumers are as follows: 1 = 50 ; 2 =
Problem 2 [5] : There are three consumers of a public good. The demands for consumers are as follows: 1 = 50 ; 2 = 110 ; 3 = 150 where measures the number of units of the public good and is the price in rupees. The marginal cost of the public good is 190.
If it so happens that the public good does not get provided at all, what is the size of the dead weight loss arising out of this market failure?
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