Why does the price level not generate an efficient situation

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Reference no: EM131359159

Assume that the demand curve for consuming a public good is given by p=20-q. The total cost for providing the good is 70.

Assume also that the price for consuming the good is set at 5. Will there be enough revenues to cover the cost of proving the public good?Show in a figure and explain.Why does this price level not generate an efficient situation?

Reference no: EM131359159

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