Question
Utility from clean air (public good) is us(A) = 55A A^2 and Leo's utility from clean air is ul(A) = 45A2A^2. A is the
Utility from clean air (public good) is us(A) = 55A − A^2 and Leo's utility from clean air is ul(A) = 45A−2A^2.
A is the amount of clean air in their apartment. In order to clean up the air in their apartment, they have to work together.
The total cost is given by TC (A) = 2A^2 + 40A. What is the socially optimal level of clean air?
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Elementary Statistics A Step By Step Approach
Authors: Allan Bluman
8th Edition
73386103, 978-0073386102
