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Reflection Question Alpha, Beta and Gamma are consumers of a public good. The marginal benet (5) of each unit of the public good is given
Reflection Question Alpha, Beta and Gamma are consumers of a public good. The marginal benet (5) of each unit of the public good is given by the following table. Public Good Alpha I Beta m 1'-"t u nit 3 10 12 2nd unit 4 8 5 3rd unit 2 5 3 4\"" unit 1 4 2 Suppose each unit of the public good costs 515. How many units of the public good would be optimal? Explain. If the public good becomes a private good and the price drops to $8. The marginal benefits are the same as that given in (a). How many units of the private good would be purchased? Explain
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