If E is a public good, then we would interpret pe as the tax per unit of
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If E is a public good, then we would interpret pe as the tax per unit of E that the person pays. As everyone would have to consume the same quantity, the person would not be able to choose the value of E so that the optimization of utility would be over only X and Z.
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Related Book For
Cost Benefit Analysis Concepts And Practice
ISBN: 9781108401296
5th Edition
Authors: Anthony E. Boardman, David H. Greenberg, Aidan R. Vining, David L. Weimer
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