Assume also that the price for consuming the good is set at, Finance Basics

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Assume also that the price for consuming the good is set at

Assume that the demand for consuming a public good is given by P=20-q. Thet 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?

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Finance Basics: Assume also that the price for consuming the good is set at

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