In Problem 17.22, how would your answer change if the marginal cost of the public good is $60? What if the marginal cost is $350?
Problem 17.22
There are three consumers of a public good. The demands for the consumers are as follows:
where Q measures the number of units of the good and P is the price in dollars. The marginal cost of the public good is $180. What is the economically efficient level of production of the good? Illustrate your answer on a clearly labeled graph.