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Alice, Beth, and Carol are the only three demanders of a pure public good. Their demand functions are as follows: P a = 70 - G, P b = 110 - G, P c =...
Alice, Beth, and Carol are the only three demanders of a pure public good. Their demand functions are as follows:
Pa = 70 - G,
Pb = 110 - G,
Pc = 130 - G.
G measures the number of units of the good and pi is the price in dollars. The marginal cost of the public good is a constant $190.