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    economically efficient level of production of the good

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    There are three consumers of a public good. The demands for the consumers are as follows:
    Consumer 1: P1 = 60 â?" Q
    Consumer 2: P2 = 100â?" Q
    Consumer 3: P3 = 140 â?" Q
    where Q measures the number of units of the good and P is the price in dollars. The marginal cost of the public good is $180.
    a) What is the economically efficient level of production of the good? Illustrate your answer on a clearly labelled graph.
    b) How would your answer change if the marginal cost of the public good is $60?

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    https://brainmass.com/economics/price-levels/economically-efficient-level-of-production-of-the-good-344764

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    See the attached file. Thanks

    There are three consumers of a public good. The demands for the consumers are as follows: 
    Consumer 1: P1 = 60 - Q 
    Consumer 2: P2 = 100 - Q 
    Consumer 3: P3 = 140 - Q 
    where Q measures the number of units of the good and P is the price in dollars. The marginal cost of the public ...

    Solution Summary

    Marginal Social Benefits are depicted.

    $2.19