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Suppose that three residents of a town would get marginal benefits from a pure public good given by the following equations: MB1 = 202Q MB2

Suppose that three residents of a town would get marginal benefits from a pure public good given by the following equations: MB1 = 202Q MB2 = 202Q MB3 = 10 Q Suppose that this public good costs $30 per unit. (a) If each resident purchased the good separately, how much would each resident pur-chase? Briefly Explain. (b) Solve for the equation that represents the marginal social benefit for the three residents. (c) What is the socially optimal amount of the public good? (d) Suppose that each resident was assigned a tax $10, and the quantity purchased would be determined by majority vote. What quantity would be purchased?

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