This question is a bit tricky and looks scary because it has many parts. But once you understand the basic ideas, these parts will go by fast and you will understand public goods really well Three families live around Lake Robert. Each family has a marginal benefit from seeing a fireworks of to see fireworks which are non-rival and non-excludable. So, is the number of fireworks seen by a family i. Each firework set off costs $6 per unit, which represents the marginal social cost of provision. a. Assume you know for certain that no other family will buy a firework. How many fireworks will you buy? b. Assume you know for certain that the other families will buy a total of 1 firework (together). How many fireworks will you buy? c. Assume you know for certain that the other families will buy a total of 2 fireworks. How many fireworks will you buy? d. Assume you know for certain that the other families will buy a total of 3 fireworks, How many fireworks will you buy? e. Think about your answer to the last 4 questions. If family's each individually make their decisions about how many fireworks to buy, how many will cach family buy? Hint: Use the idea that a family chooses the number of fireworks that make them the best off given what all the other families are doing. Also note that families' have the same MB and MC, so they should each choose the same quantity. Take your time - this one is a bit tricky 1. Assume a first firework is lit. What is the benefit to your family? What is the total benefit to all families? 3. Assume a second firework is lit. What is the benefit to your family from this second firework? To all families? h. What is the Marginal Social Benefit function (that is, the function giving the marginal benefit for society as a function of quantity)? To check yourself, make sure that if you plug 1 or 2 into your function, you should get the guestions