Consider three consumers of a public good with the following marginal benefit of consumption:
Consumer 1: MB₁ = 5 - 2Q
Consumer 2: MB₂ = 4 - Q
Consumer 3: MB₃ = 3 - Q
a. If the marginal cost of producing the public good is MC = 8Q, what is the efficient quantity of it?
b. If the marginal cost of producing the public good is constant at $4, what is the efficient quantity of it?

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The Answer of Consider three consumers of a public good with the following marginal benefit of consumption: Consumer 1: MB₁ = 5 - 2Q Consumer 2: MB₂ = 4 - Q Consumer 3: MB₃ = 3 - Q a. If the marginal cost of producing the public good is MC = 8Q, what is the efficient quantity of it? b. If the marginal cost of producing the public good is constant at $4, what is the efficient quantity of it?

Consider Three Consumers of a Public Good with the Following