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What is the socially optimal level of police provision

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Reference no: EM132158745

Alfie, Bill, and Coco each value police protection differently.

Alfie's demand for the public good is Q = 70-10P, Bill's demand is Q = 70-5P, and Coco's demand is Q = 44-4P.

If the marginal cost of providing police protection is $10.00, what is the socially optimal level of police provision?

Under Lindahl pricing, what share of the tax burden would each of the three people pay?

Reference no: EM132158745

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