Suppose Mike and Megan truthfully reveal their preference for a public good such that Mike's preference...
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Suppose Mike and Megan truthfully reveal their preference for a public good such that Mike's preference is Q = 100-P and Megan's preference is given by Q = 100 - 0.5P. The marginal cost of supplying the public good is given by P=Q. What is the Lindahl price charged to Mike and Megan for this public good? Suppose Mike and Megan truthfully reveal their preference for a public good such that Mike's preference is Q = 100-P and Megan's preference is given by Q = 100 - 0.5P. The marginal cost of supplying the public good is given by P=Q. What is the Lindahl price charged to Mike and Megan for this public good?
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To find the Lindahl equilibrium price for this public good we need to first determine the total demand for the public good at different prices taking ... View the full answer
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