There are three consumers of a public good. The demands of the consumers are as follows:...
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There are three consumers of a public good. The demands of the consumers are as follows: P=60-Q1 P= 100 - Q2 P= 140 - Q3 where Q measures the number of units of the good and P is the price (i.e. willingness to pay) in pounds. The marginal social cost of the public good is £180. In the absence of government intervention, why may the actual amount of a public good that is provided be zero? There are three consumers of a public good. The demands of the consumers are as follows: P=60-Q1 P= 100 - Q2 P= 140 - Q3 where Q measures the number of units of the good and P is the price (i.e. willingness to pay) in pounds. The marginal social cost of the public good is £180. In the absence of government intervention, why may the actual amount of a public good that is provided be zero?
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Related Book For
Fundamentals of Thermodynamics
ISBN: 978-0471152323
6th edition
Authors: Richard E. Sonntag, Claus Borgnakke, Gordon J. Van Wylen
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