Lecture+20+November+16

Lecture+20+November+16 - Todays Agenda Public goods Common...

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Today’s Agenda Public goods Common property resources
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Group tutorial sessions? Could be held: 8 to 10 p.m. two nights a week to help you prepare for the final I will hire tutor if worthwhile to you. Share cost according to value to you.
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The value I place on these 20 hours of tutorial help is: A. Zero to $0.99 B. $1.00 to $3.99 C. $4.00 to $6.99 D. $7.00 to $9.99 E. $10.00 or more
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My office hours Monday 4:15 to 5:15 Tuesday 1:30 to 3:00 May be expanded if useful to you
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Public goods Two defining properties Non-rival consumption My consumption of the good does not prevent your consumption of the same unit of the good. Costly exclusion It is impossible or expensive to keep non-payers from enjoying the benefits of the good.
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A half-pound bacon cheeseburger with mushrooms, ketchup, mustard, low-calorie mayonnaise, guacamole, fried onions, and extra jalapeños and anchovies is A. excludable and rival in consumption. B. excludable and nonrival in consumption. C. nonexcludable and rival in consumption. D. nonexcludable and nonrival in consumption. E. a nutritious and satisfying accompaniment to the study of economics.
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Efficient provision of a public good Q $/Q Q $/Q Q $/Q D 1 = MB 1 D 2 = MB 2
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Efficient provision of a public good Q $/Q Q $/Q Q $/Q D 1 = MB 1 D 2 = MB 2 a
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Efficient provision of a public good Q $/Q Q $/Q Q $/Q D 1 = MB 1 D 2 = MB 2 a b
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Efficient provision of a public good Q $/Q Q $/Q Q $/Q D 1 = MB 1 D 2 = MB 2 a b a+b
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Efficient provision of a public good Q $/Q Q $/Q Q $/Q D 1 = MB 1 D 2 = MB 2 a b a+b
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Efficient provision of a public good Q $/Q Q $/Q Q $/Q D 1 = MB 1 D 2 = MB 2 MB social = MB 1 + MB 2 Social marginal benefit is the vertical sum of individuals’ marginal benefits.
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Efficient provision of a public good Q $/Q Q $/Q Q $/Q D 1 = MB 1 D 2 = MB 2 MB
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Lecture+20+November+16 - Todays Agenda Public goods Common...

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