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Suppose there are three consumers of a public good with the following marginal benets of consumption related to the quantity of the public good provided:
Suppose there are three consumers of a public good with the following marginal benets of consumption related to the quantity of the public good provided: Consumer 1: ME; = 5 2Q Consumer 2: M3; = 4 Q Consumer 3: M33 = 3 Q Calculate and draw the total marginal benet function of the public good in a fully,r labelled diagram. If the marginal cost of producing the public good is MC = 2:1 what is the efcient quantity.r and how much should each consumer contribute to its provision it it were to provided at the efcient level [assuming the non-rival and non-excludable problems could be resolved}
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