Question: There are two agents. One agent only values good A - we'll call her the type A agent - and the other only values good

There are two agents. One agent only values good A - we'll call her the type A agent - and the other only values good B (the type B agent). Their inverse demand curves are PEKQ) : 4* Q P309) : 4* 29 Each agent has a value of $1 for each dollar spent on the public good. Since there are two agents, each dollar of government spending generates two dollars of value. The total benet function is B(R)=2>

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Values: What is important to me?

Purpose: What do we seek to achieve with our behaviour?

An action plan is prepared.