Consider a market in which consumption of the good being, Ask an Expert

Economics

Consider a market in which consumption of the good being traded generates a positive externality.
There are 100 identical consumers, each with a utility function given by 1/2 √q+m+√G, where G denotes the total level of consumption in the market.
The good is sold by competitive firms that produce with a constant marginal cost of 1 $/unit.

What is the difference between the optimal level of total consumption minus the amount of total consumption generated by the market?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M989251

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