Question
Suppose there are only two people in society. The demand curve for person A for mosquito control is given by qA =200 - P For
Suppose there are only two people in society. The demand curve for person A for mosquito control is given by qA =200 - P For person B, the demand curve for mosquito control is given by qB = 400 -P a. Suppose mosquito control is a nonexclusive good. What type of the product is it? What would be the optimal level of this activity if it could be produced at a constant marginal cost of $100 per unit? b. If mosquito control were left to the private market, how much might be produced? Does your answer depend on what each person assumes the other will do? Does any problem arise?
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