Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 12, 2024

Suppose that two individuals are considering a public good (Q). Individual 1 receives a Marginal Benefit (MB1) from each unit of Q according to: MB1

Suppose that two individuals are considering a public good (Q).

Individual 1 receives a Marginal Benefit (MB1) from each unit of Q according to:

MB1 = 10 - Q

Individual 2 receives a Marginal Benefit (MB2) from each unit of Q according to:

MB2 = 32 - 2Q

The Marginal Cost (MC) of each unit of Q is given by:

MC = 21

What is the socially optimal quantity to purchase in this question?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: N. Gregory Mankiw, William M. Scarth

5th Canadian Edition

1464168504, 978-1464168505

More Books

Students also viewed these Economics questions

Question

★★★★★

Loser Limited is a wholly owned subsidiary of Bigbucks Limited. Loser has generated the following losses which it has not been able to absorb in a carryover year and it is not likely to generate...

Answered: 1 week ago

Question

★★★★★

=+1 A restaurant manager wonders whether customers who dine on Friday nights have the same preferences among the chefs four special entres as those who dine on Saturday nights. One weekend he has the...

Answered: 1 week ago

Question

★★★★★

Suppose a 90% and a 95% confidence interval for the population median were computed from a random sample resulting in the two intervals 114134 and 118129. Determine which of the intervals is the 90%...

Answered: 1 week ago

Question

★★★★★

Robert is a sole proprietor who uses the calendar year as his tax year. On July 20, 2015 he acquired and placed in service a business machine, a 7-year asset, for $50,000. No other property was...

Answered: 1 week ago

Question

★★★★★

quarter 4 is also there pls answer faster Carla Vista Products Company uses a job order cost system. For a number of months, there has been an ongoing rift between the sales department and the...

Answered: 1 week ago

Question

★★★★★

This is a variation of Exercise S-3 focusing on journal entries. E5-4 Installment sales Charter Corporation, which began business in 2013, appropriately uses the installment sales method of...

Answered: 1 week ago

Question

★★★★★

QUESTION 5 Company X has just produced the first unit: Direct material cost Direct manufacturing labor-hours Direct manufacturing labor cost per labor-hour $160,000 6,000 $30 $20 Variable...

Answered: 1 week ago

Question

★★★★★

based on the book risk upfront can you help me understand What are the four parameters that affect behavior, result, and narrative, and what they mean?

Answered: 1 week ago

Question

★★★★★

3 > O Actual direct-labour hours Standard direct-labour hours...

Answered: 1 week ago

Question

★★★★★

= {x|ln 3.2 x 20} and two events A Problem 1. (6 points) Given a sample space S x 6} and B {x|3 x 7}, describe the following events. a) AUB. b) A - B. c) AU (BNS). = {x|2

Answered: 1 week ago

Question

★★★★★

MCCC MATH-130 NAME: PROBABILITY & STATISTICS ASSIGNMENT #7 - CHAPTER 8 PLEASE SHOW ALL WORK (TOTAL 20 POINTS) 1. Test the claim that the mean body temperature of normal and healthy adults is equal to...

Answered: 1 week ago

Question

★★★★★

1. In the coming year, as the COVID-19 pandemic eases and the Federal government increases its expenditure, the economic recovery in the US is likely to speed up and inflation may start to take off....

Answered: 1 week ago

Question

★★★★★

Self-awareness is linked to the businesss results.

Answered: 1 week ago

Question

★★★★★

1. Too reflect on self-management

Answered: 1 week ago

Question

★★★★★

Food supply

Answered: 1 week ago

Previous Question Next Question