In the analysis of the optimal level of a public good, suppose that each person's utility function is quasilinear: Ui(G) + Pi. Show that the optimal G is unique and independent of P1 and P2 if society has adequate resources. (Hint: See Solved Problem 17.3.)

In the analysis of the optimal level of a public good, suppose that each person's utility function is quasilinear: Ui(G) + Pi. Show that the optimal G is unique and independent of P1 and P2 if society has adequate resources. (Hint: See Solved Problem 17.3.)

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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In the analysis of the optimal level of a public good, suppose that each person's
utility function is quasilinear: Ui(G) + Pi. Show that the optimal G is unique and independent
of P1 and P2 if society has adequate resources. (Hint: See Solved Problem 17.3.)

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