Cmpute the share of tax burden for both john and dave in

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ohn and Dave value national defense differently. John's demand for the public good is: P = 50 - .20Q. Dave's demand for the public good is 30 - .30Q. The marginal cost of providing national defense is $40. What is the socially optimal level of national defense? Calculate the share of the tax burden for both John and Dave (in percentage terms) for national defense based on Lindahl pricing? Finally, let's assume that Republicans value national defense much more than Democrats (I realize this is a gross generalization). Based on this assumption (and not knowing anything else about John and Dave) who is a Republican and who is a Democrat? Explain

Reference no: EM13395294

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