Three Individuals Consume a Public Good, and Their Demands Are

question 98

Essay

Three individuals consume a public good, and their demands are expressed as:
P₁ = 1.5 - 0.005Q (for Q < 300);
P₂ = 4.5 - 0.007Q (for Q < 643);
P₃ = 3.0 - 0.002Q (for Q < 1500),
where P represents price in dollars per unit and Q represents output in units per day. The marginal cost of providing the service is given as a constant $5.00 per unit. Determine the efficient level of output of this public good.

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Definitions:

Noise Pollution

Unwanted or harmful outdoor sound that is produced by industrial or human activities, affecting the health and well-being of humans and wildlife.

Urban Dwellers

Individuals who live in densely populated areas known as cities or towns, often experiencing a lifestyle that contrasts with rural living.

Zoning

The process of dividing land in a municipality into zones in which certain land uses are permitted or prohibited.

Land Use

The way in which and the purposes for which land is managed and used, including agricultural, residential, industrial, and recreational purposes.