What would be the share of the cost each should pay


Problem

Let there be two identical consumers. What would be the share of the cost each should pay for a public good at the Lindahl equilibrium? Use this result to argue that there must be a subsidy to the price of the public good that makes the private purchase equilibrium ecient.

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.

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International Economics: What would be the share of the cost each should pay
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