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Question: There are three people in an economy. Each has a different marginal benefit function regarding good x.
MBA = 150
MBB = 120
MBC = 100
a) Assuming x is a pure private good, identify the total demand function in this market. Make sure the indicate all the price ranges that the functional form changes.
b) Assuming x is a pure public good, derive the total marginal benefit function. What is the optimum quantity of x if the marginal cost of producing it is 50.
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