What is the economically efficient level of production

Reference no: EM131250718

In Problem 17.22, how would your answer change if the marginal cost of the public good is $60? What if the marginal cost is $350?

Problem 17.22

There are three consumers of a public good. The demands for the consumers are as follows:

where Q measures the number of units of the good and P is the price in dollars. The marginal cost of the public good is $180. What is the economically efficient level of production of the good? Illustrate your answer on a clearly labeled graph.

Reference no: EM131250718

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