Calculate the total marginal benefit mbt

Reference no: EM131309444

There are two consumers of mosquito abatement, a public good. Dash's benefit from mosquito abatement is given by MB_D = 100 - Q, where Q is the quantity of mosquito abatement. Lilly's benefit is given by MB_L = 60 - Q.

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.)

Reference no: EM131309444

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