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Data on Two Individuals' Preferences for a Public Good Are

question 2

Essay

Data on two individuals' preferences for a public good are reflected in the table below.PA and PB represent the prices individuals A and B,the only two people in the society,are willing to pay for the last unit of a public good,rather than do without.


Definitions:

Net Income

The final amount a company earns, following the deduction of all expenditures and taxes from its total revenue.

Ending Inventory

The cost of inventory on hand for selling at the conclusion of an accounting cycle.

Consignment

A business arrangement wherein goods are left in the possession of an authorized third party to sell, but ownership remains with the supplier until items are sold.

Ending Inventory

The total value of all inventory held by a company at the end of an accounting period.

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