Suppose there are only two individuals in society.

Suppose there are only two individuals in society. Person A's demand curve for bugs control is given by QA =100−P and for person B, the demand curve is given by QB =200−P

(a) Suppose bugs control is a pure public good; that is, once it is produced, everyone benefits from it. What would be the optimal level of this activity if it could be produced at a constant marginal cost of $120 per unit?

(b) If bugs control were left to the private market, how much might be produced?

Does the answer depend on what each person assumes the other will do?