I need help with question 4 please Problem 1: Public GoodsSuppose that three individuals each benefit from a public good. The marginal cost of the publicgood provision is fixed at $15 per unit:MC = $15Whereas each of the three individuals (Person 1, Person 2, and Person 3) each receive amarginal benefit for each unit of the public good defined by:Person 1: MB₁ = 30 - 2QPerson 2: MB₂ = 20 - 20Person 3: MB3 = 21 - QAs is the case with public goods, they are non-rival. Therefore, note that each person gainsbenefit from the total amount of Q purchased by everybody, not just the individual value thatthey purchase themselves (e.g. Q₁, Q₂, or Q3).1. Draw a figure with all three MB curves, the MC curve, and the Social Marginal Benefit(SMB) Curve. Label all x-intercepts, y-intercepts, and kinks in the SMB curve.2. Given the above MB curves, write down the Social Marginal Benefit Curve as a functionof Q. Show your work.3. What is the Socially Optimal Choice of Q and would any private individual purchase thison their own? Show your work.Suppose that you are on the town council, and that the town currently has Q = 11 of this publicgood. You are considering raising money from Persons 1-3 in order to buy another unit of Q,where Person 1 pays t₁, Person 2 pays t2, Person 3 pays t3 (t₁, t2, and t3 can all be different).4. Propose a set of taxes (t₁, t2, t3) such that they both (i) raise enough money to buy theextra unit of Q, and (ii) that they make each person strictly better off. Show your work.

Given: 3 individuals benefit from a public good. MC of public good = $15. Three individuals named…

Suppose that you are on the town council, and that the town currently has Q = 11 of this public good. You are considering raising money from Persons 1-3 in order to buy another unit of Q, where Person 1 pays t₁, Person 2 pays t₂, Person 3 pays t3 (t₁, t2, and t3 can all be different). 4. Propose a set of taxes (t₁, tz, t3) such that they both (i) raise enough money to buy the extra unit of Q, and (ii) that they make each person strictly better off. Show your work.

Suppose that you are on the town council, and that the town currently has Q = 11 of this public good. You are considering raising money from Persons 1-3 in order to buy another unit of Q, where Person 1 pays t₁, Person 2 pays t₂, Person 3 pays t3 (t₁, t2, and t3 can all be different). 4. Propose a set of taxes (t₁, tz, t3) such that they both (i) raise enough money to buy the extra unit of Q, and (ii) that they make each person strictly better off. Show your work.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 2PA

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