Macroeconomics 2nd Edition by Campbell McConnell ,Stanley Brue,Sean Flynn

Exercise 15

The accompanying table relating to a public good provides information on the prices Young and Zorn are willing to pay for various quantities of some public good. These two people are the only members of society. Determine the price that society is willing to pay for the public good at each quantity of output. If the government's marginal cost of providing this public good is constant at $7, how many units of the public good should government provide? Why not less? Why not more?