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Homework answers / question archive / Let O be a public good consumed by consumers A, B and C whose (inverse) demands for Q are: PA= 320 - 20: PB = 240-29and Pc = 200 -0
Let O be a public good consumed by consumers A, B and C whose (inverse) demands for Q are: PA= 320 - 20: PB = 240-29and Pc = 200 -0. Suppose the cost of each unit of Q is $200. a. What is the efficient quantity of O to be consumed by these consumers? b. What are the "Lindahl prices" that would allow the efficient quantity to be consumed?
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