Consider Three Consumers of a Public Good with the Following

question 78

Essay

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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Definitions:

Brand Manager

A professional responsible for developing and maintaining a brand to increase its market share and profitability.

Brand's Position

Refers to a brand's unique place in the market, perceived by consumers, in relation to its competition, based on attributes, benefits, values, or identity.

Personality

The combination of characteristics or qualities that forms an individual's distinctive character, often applied to brands to humanize them.