Question: QUESTION 3 A consumer h , where h = 1 ; 2 , wishes to maximise her utility max xh ;gh Uh = 1 ln

QUESTION 3 A consumer h, where h =1; 2, wishes to maximise her utility max xh ;gh Uh =1 ln(xh)+0:51 ln(G)(1) subject to the budget constraint Mh = xh + gh,(2) where G = g1+ g2.(3) In this specication, ln denotes the natural logarithm, xh denotes a private good and gh denotes the contribution of each consumer to the public good G.

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