QUESTION
Suppose that the government is providing a public good to two people, Lesedi and Sunil. To Lesedi, the marginal benefit of the public good is MB = 1,374 – 142Q. Sunil’s marginal benefit is MB = 2,287 – 153Q. The marginal cost of providing the public good is constant and is equal to $1,596. What is the efficient quantity of the public good?
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