THIS IS PRACTICE. Suppose there are three individuals in a c…
THIS IS PRACTICE. Suppose there are three individuals in a community: Alvin, Simon, and Theodore. Each has a demand curve over the public good: Alvin: P = 12 – 3Q Simon: P = 8 – 2Q Theodore: P = 4 – Q The marginal cost of providing the public good is MSC = 12. What is the Lindahl tax price Simon would pay if the Lindahl Equilibrium were implemented?