What is the efficient level of the public good, Managerial Economics

Consider an economy with two individuals. Individual 1 has (inverse) demand curve for a public good given by P1=60-2Q1, While individual 2 has (inverse) demand curve for the public good given by P2=90-5Q2. The prices are measured in $ per unit. Assume the marginal cost of producing the public good is $10 per unit. What is the efficient level of the public good?

Posted Date: 3/15/2013 3:04:31 AM | Location : United States

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