Problem
In the previous question, suppose a new citizen joins the economy, and her demand for the public good is given by P = 10-(5/12)Q.
(a) Derive the new demand for the public good on the part of the whole economy and compute the new optimal level of supply, given that the MC remains unchanged.
(b) Calculate the total value to the consumers of the amount supplied at this efficient output level.
(c) Compute the net value to society of that choice - the total value minus the total cost.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.