Problem 7. (Figure: Public Goods) The graph shows the marginal benefit curves for two consumers of a public good. MB & MC 10 MC MBI
Problem 7. (Figure: Public Goods) The graph shows the marginal benefit curves for two consumers of a public good. MB & MC 10 MC MBI MB2 O 2 4 6 8 Quantity of public good a, Graph the total marginal benefit curve. (5 points) b. What is the total marginal benefit of 4 units of a public good? (5 Points) c. What is the efficient quantity of the public good? (5 Points)
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