A local government will pool resources of three communities (A, B, C). The local government believes there will be two different quantities available for the ublic good (Q = 50 units and Q = 75 units of the public good Use estimated marginal benefit equations for each community. MBA = 175 - Q MBB = 155 - Q MBC = 105 - Q a) Total demand by the three communities for 50 units b) Total demand by the three communities for 75 units. c) After estimating the total demand under both scenarios, would you advise the local government to consider increasing the amount of the public goods available? Why?
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