Question: Plz plz help The mosquito abatement program is a public good, and it gives benefits to two towns. The demand for mosquito abatement net by
Plz plz help

The mosquito abatement program is a public good, and it gives benefits to two towns. The demand for mosquito abatement net by town 1 is p, = 210 - Q, and the demand by town 2 is p2 = 50 - Q/2, where Q is the quantity of mosquito abatement net. The marginal cost of providing the mosquito abatement net is MC = 60 + Q. If both towns set the amount of mosquito abatement net independently, what is the total quantity under the competitive market? What is the socially optimal quantity of mosquito abatement net? Discuss the relationship between the competitive quantity and the socially optimal quantity
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
