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Suppose there are two types of people in society. The Marginal Benefit for type group A for mosquito control is given by MBa= 200 -
Suppose there are two types of people in society. The Marginal Benefit for type group A for mosquito control is given by MBa= 200 - 3Q. For type B group, the marginal benefit for mosquito control is given by MBb= 200 - Q.
- Assuming that mosquito control is a jointly consumed good, what would be the efficient level of this activity if it could be produced at a marginal cost of 6Q? Graph a picture of this. Shade Total Surplus
- If there was a vote about how much mosquito control to enact and Type group A won so got to choose: what would the Q be? Graph a picture of this. Shade Total Surplus.
- If both types got to order mosquito control and did not coordinate what would be the total control ordered be? Graph a picture of this. Shade Total Surplus.
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