1.Individual A and B have the following marginal benefits

1.Individual A and B have the following marginal benefits for private good X:     MB A =10=X A , MB B =10-X B

While the cost of producing each unit is 2 dollars (i.e., MC=2). 

You are asked to:

a.On a graph, find the market demand function for private good X.

b.Find the market equilibrium.

c. Find consumer A quantity demanded, and consumer B quantity demanded. 


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