Three individuals consume a public good, and their demands are expressed as: P₁ = 1.5 - 0.005Q (for Q

Question

Three individuals consume a public good, and their demands are expressed as:
P₁ = 1.5 - 0.005Q (for Q < 300);
P₂ = 4.5 - 0.007Q (for Q < 643);
P₃ = 3.0 - 0.002Q (for Q < 1500),
where P represents price in dollars per unit and Q represents output in units per day. The marginal cost of providing the service is given as a constant $5.00 per unit. Determine the efficient level of output of this public good.

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The Answer of Three individuals consume a public good, and their demands are expressed as: P₁ = 1.5 - 0.005Q (for Q < 300); P₂ = 4.5 - 0.007Q (for Q < 643); P₃ = 3.0 - 0.002Q (for Q < 1500), where P represents price in dollars per unit and Q represents output in units per day. The marginal cost of providing the service is given as a constant $5.00 per unit. Determine the efficient level of output of this public good.

Three Individuals Consume a Public Good, and Their Demands Are