Question: Consider three consumers indexed by i = {1,2,3} with the following demand functions for a public good G: 1 1 P = 10G, P

Consider three consumers indexed by i = {1,2,3} with the following demand functions for a public good G: 1 1 P = 10G, P = 10- G, P3 = 20 G 20 20 10 where P is the price consumer i is willing to pay for G. (a) (10 pts) If marginal cost is constant at $15, what is the private provision of public good G? (b) (10 pts) If marginal cost is constant at $15, what is the optimal level of public good?

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