Question: Consumer 1: P1 = 60 - Q Consumer 2: P2 = 100 - Q Consumer 3: P3 = 140 - Q where Q measures

Consumer 1: P1 = 60 - Q Consumer 2: P2 = 100 - Q Consumer 3: P3 = 140 - Q where Q measures the units of the

Consumer 1: P1 = 60 - Q Consumer 2: P2 = 100 - Q Consumer 3: P3 = 140 - Q where Q measures the units of the good and P is the price. The marginal cost of the public good is $180. (a) (b) (c) There are three consumers of a public good. Their demands are: (d) Construct a graph showing the marginal social benefit (MSB) curve of the public good in this 3-person economy. What's the efficient level of the public good? Suppose that the public good (in b) is not provided at all because of free rider problem. What is the size of the deadweight loss arising from this market failure? What's the answer to (b) if the marginal cost of the public good is now $60?

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