What is the socially optimal level of the public good

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Suppose there are two people who have the following valuations of level y of a public good v12122 (y) = 222√y and v(y) = 210√y. So they have marginal benefits of MB = 111/√y and MB = 105/√y. The cost of providing the public good is given by c(y) = 4y and the marginal cost is 8y. What is the socially optimal level of the public good?

Reference no: EM133131467

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