125% + EB A View Zoom Add Page Insert Table Chart Text Shape Media Comment Collaborate Format Document 1. The town of Musicville has two residents, Bach and Mozart. Bach's demand for outdoor concerts is P = 160- 4Q and Mozart's is Q = 40 - P. The MC of concerts is constant and equal to $100 per concert. a. Write down an equation for the market demand curve if outdoor concerts are a private good. b. Write down an equation for the market demand curve if outdoor concerts are a public good c. If outdoor concerts are a public good, find the efficient number of concerts. d. Find the marginal social benefit (combined marginal benefit of Mozart and Bach) of providing 15 concerts and explain why it is not the efficient level. e. Sketch the results to part c (demand curves, MC curve, efficient level, etc.) f. Suppose Mozart is a free-rider and Bach is not. If we leave it up to the market to provide concerts, how many concerts would we expect to take place? g. If the government decides to provide this public good and uses Lindahl prices, what tax per unit would the government charge Bach? What would be the total tax bill for Mozart? h. If the government decides to provide this public good and uses Lindahl prices, find the consumer surplus of Bach, Mozart and the total surplus. 2 a. Explain the difference between public production and a public good. b. Is it possible for a good to be publicly provided and privately produced? 3. True or false and briefly explain a. The MC of producing a public good is zero since additional consumers can enjoy the public Nothing selected. good at zero MC. Select an object or text to format. b. Efficient provision of a public good requires that each member of society place the same value on the last unit