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There are two consumers of mosquito abatement, a public good. Dash's benefit from mosquito abatement is B D = 100 - Q , where Q

There are two consumers of mosquito abatement, a public good. Dash's benefit from mosquito abatement isBD = 100 -Q, whereQ is the quantity of mosquito abatement. Lilly's benefit is given byBL = 60 -Q. Assume that the cost of mosquito abatement is 2Q.

  1. What equation represents the total benefit of the fountain?
  2. Graph benefit for each individual. Graph total benefit. Put benefit level on the vertical axis and quantity on the horizontal axis. Have three curves on the same graph.
  3. Graph the cost of abatement on the same graph as well.
  4. What is the efficient optimal size of the fountain? Remember in class that the sum of the benefits must equal to the cost.
  5. Given the Q you found in part d), how much benefit do Dash and Lilly enjoy at the optimal level of mosquito abatement? (Assume Dash and Lilly do not have to bear any cost personally, but the government at no direct cost provides abatement.)

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