# I've seen this problem solved with various answers. Still having difficulty understanding the process, please explain....

###### Question:

I've seen this problem solved with various answers. Still having difficulty understanding the process, please explain.

(20 points) Arnold and Betty have identical marginal benefit formulas for a public good. The MBs are given by : MB, = a(Y+98)-BQ* MB, = a(Y, +q)-BQ* where, Q* = 9, +93 a and B are constant positive numbers, a<l. YA, YB, are incomes of Arnold and Betty. 9A, QB are purchases of the public good by Arnold and Betty. The marginal cost of a unit of the public good is constant: MC-C. a. As in lecture, determine the best response functions for Arnold and Betty. Suppose now that a=.5, B=5, YA=Y=200, and MC=10. b. What is the strategic equilibrium quantity of the public good that gets produced? c. What is the socially optimal quantity of the public good that gets produced? d. Claim: as the slope of the MB curve gets steeper, the difference between the strategic equilibrium and the socially optimal quantity increases. Agree or disagree. How do the formulas help you answer the question? In words briefly explain the economics of this result.

#### Similar Solved Questions

##### Please help For the reaction shown, calculate how many moles of each product form when the...
Please help For the reaction shown, calculate how many moles of each product form when the given amount of each reactant completely reacts. Assume that there is more than enough of the other reactant. C3H8(g)+5O2(g)→3CO2(g)+4H2O(g) c)0.0588 molC3H8 Express your answer using three significant fi...
##### Please answer both Compared with internet non-dependents in Young's original study of internet addiction, internet dependents:...
please answer both Compared with internet non-dependents in Young's original study of internet addiction, internet dependents: Select one: O a. were more likely to use email. o b. spent fewer hours per week using the internet. O c. were more likely to have used the internet for more than one ye...
##### Fill-in-the-Blank Questions is a six-membered ring formed from a monosaccharide 11. A Section: 11.1 is a...
Fill-in-the-Blank Questions is a six-membered ring formed from a monosaccharide 11. A Section: 11.1 is a stereoisomer that is not a mirror image. 12. A Section: 11.1 13. When an open-chain monosaccharide cyclizes into a ring, it forms a Section: 11.1 14. Maltose is composed of two molecules of gluco...
##### Problem 19.56 Part A Review What is the mass of the object? The electric field between...
Problem 19.56 Part A Review What is the mass of the object? The electric field between the plates of a parallel- plate capacitor is horizontal, uniform, and has a magnitude E. Asmall object with a charge of-2.08 μC is attached to the string. The tension in the string is 0.450 N, and the angle it ...
##### I lost in this I need help please thank you 7) [10] Evaluate the integral using...
I lost in this I need help please thank you 7) [10] Evaluate the integral using spherical coordinates. Sketch the solid of integration, and describe the solid in words. Evaluate the integral completely. SSL *Vx2 + y2 +2° dz dy de...
##### In the adjoining diagram, show (on the illustration) the directions for the tour forces (P: hydrodynamic;I:...
In the adjoining diagram, show (on the illustration) the directions for the tour forces (P: hydrodynamic;I: osmotic) causing capillary and interstitial fluid flow across the capillary wall. (a) Which direction is the "net" flow in and (h) what is the overall pressure if: P 9 mm Hg; Pi (3);cc...
##### Plz. . OCH 5. An inventor has devised a complicated nonflow process in which 1 mol...
plz. . OCH 5. An inventor has devised a complicated nonflow process in which 1 mol of air (assume ideal) is the working fluid. The net effects of the process are claimed to be: A change in state of the air from 250 C and 3 bar to 80 C and 1 bar/The production of 1,800) of work/ The transfer of some ...
##### Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for...
Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units @ $102 Mar. 10 Purchase 70 units$114 30 units @ $122 Aug. 30 Dec. 12 Purchase Purchase 60 units @$128 There are 80 units of the item in t...
##### Convert -97 to 8-bit sign-magnitude, 1's complement, 2's complement and excess-127. Please be careful and explain...
convert -97 to 8-bit sign-magnitude, 1's complement, 2's complement and excess-127. Please be careful and explain all the steps and details....
##### 1)Draw the following vectors and the resultant and calculate the magnitude and direction. Velocities of: 3m/s...
1)Draw the following vectors and the resultant and calculate the magnitude and direction. Velocities of: 3m/s at 18° and 7m/s at 115° when acting simultaneously on a point. 2)Acceleration of a⃗ = 1.5 m/s2 at 90° and b⃗ = 2.6 m/s2 at 145° act at a point. Draw a diagram and...
##### The examples form the book are: zero map, identity linear map, differentiation linear map, integration linear...
The examples form the book are: zero map, identity linear map, differentiation linear map, integration linear map, multiplication by x2 linear map, backward shift linear map, from R3 to R2, or generally  from Fn to Fm linear map. Can you give an example (not one of the examples already in ...
##### An aluminum bar is subjected to a loading shown below. if the maximum axial stress must...
An aluminum bar is subjected to a loading shown below. if the maximum axial stress must not exceed 150 MPa, what should be the minimum dismensions of the 3 sections of the bar? 325 kN 215 kN 175 kn 1.2 m 1.2 m...
##### An electric toy car with a mass of 2 kg is powered by a motor with a voltage of 1 V and a current supply of 6 A. How long will it take for the toy car to accelerate from rest to 6 m/s?
An electric toy car with a mass of 2 kg is powered by a motor with a voltage of 1 V and a current supply of 6 A. How long will it take for the toy car to accelerate from rest to 6 m/s?...
kayak for A sporting goods retailer purchases items to sell in his store. He purchases 1.2 a $250 and sells it for$625. Determine the following: a. dollar markup b. markup percentage on cost . markup percentage selling price c. on 1.3 A consumer purchases a bicycle from a retailer for \$150. The ret...