1) Considerthe demand for a public good estimated for two sets of consumers:
(1) P1 = -0.5Q +10
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(2) P2 = -0.25Q + 5
where Pis the price that each consumer is willing to pay at difference levels ofquantity. The cost of providing one additional unit of this public good is $4(e.g., marginal cost (MC) = $4)