What is the efficient level of the public good

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Consider an economy with two individuals. Individual 1 has (inverse) demand curve for a public good given by P₁ = 60 - 2Q1, while individual 2 has (inverse) demand curve for the public good given by P₂ = 90 - 5Q₂ . The prices are measured in $ per unit. Suppose the marginal cost of producing the public good is $10 per unit. What is the efficient level of the public good?

Reference no: EM131253732

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