Question: Consider a market with three consumers A, B and C. A has the demand function P = 20 - Q, B has the demand function

Consider a market with three consumers A, B and C. A has the demand function P = 20 - Q, B has the demand function P = 12 - 0.5Q and C has the demand function P = 8 - 0.5Q. The marginal cost of producing a product is constant at $8. (i) If the product is a private good, compute the market equilibrium quantity. (5 marks) (ii) Will your answer be different if the product is a public good instead? Compare your answer with (i). (5 mark

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