What is the optimum quantity of goods

Reference no: EM132208530

Question: There are three people in an economy. Each has a different marginal benefit function regarding good x.

MBA = 150 - q

MBB = 120 - q

MBC = 100 - q

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.

Reference no: EM132208530

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