Roommates A and B are planning to buy public good that costs 190 per unit. Marginal benefits for roommate A = 130 - q and B = 130-4q. The roommates will act cooperatively. How many dollars should Roommate B contribute?
Roommates A and B are planning to buy public good that costs 190 per unit. Marginal benefits for roommate A = 130 - q and B = 130-4q. The roommates will act cooperatively. How many dollars should Roommate B contribute?
Chapter1: What Economics Is About
Section: Chapter Questions
Problem 18QP
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Roommates A and B are planning to buy public good that costs 190 per unit. Marginal benefits for roommate A = 130 - q and B = 130-4q. The roommates will act cooperatively. How many dollars should Roommate B contribute?
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