There are two consumers of mosquito abatement, a public good. Dash's benefit from mosquito abatement is given
Question:
a. Calculate the total marginal benefit, MBT.
b. Suppose that mosquito abatement can be provided at a marginal cost of MC = 2Q. Find the optimal level of mosquito abatement.
c. How much benefit do Dash and Lilly enjoy at the optimal level of mosquito abatement? (Assume Dash and Lilly do not have to bear any of the cost personally, but that abatement is provided by the government at no direct cost to the recipient.)
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a The total marginal benefit is MBT MBD MBL 100 Q 60 Q 160 2Q b The optimal level of mosquito abate...View the full answer
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Related Book For 
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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