Question 3. Suppose a public good G can be created from the contribution( gi) of N...

Question 3.

Suppose a public good G can be created from the contribution( gi) of N different people. That is:G=g1+g2+g3+⋯+gN An individual’s consumer surplus is√G−g. How much will everyone contribute, if they each try to maximize only their own consumer surplus? How much should everyone contribute to maximize total consumer surplus?

Expert Solution

Rahul Sunny answered 1 year ago

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