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Suppose there are 100 consumers of a public good. Each consumer has an identical inverse demand function given by = 40 2, where measures the
Suppose there are 100 consumers of a public good. Each consumer has an identical inverse demand function given by = 40 2, where measures the number of units of the good and is the price in dollars. (a) If the marginal cost of the public good is $200 per unit, what is the economically efficient level of production of the public good? (b) How large are the net benefits? (c) Show your answer on a well labeled graph
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