Apublic good costs PLN 300. Three people vote on whether or not to deliver this good. The gross utilities from consumption of the public good for these individuals are as follows:Ua=-50,Ub=50,Uc=250. A.Who will pay the Vickrey-Groves-Clarke tax if a majority vote is applied? B.Who will pay the Vickrey-Groves-Clarke tax if the decision to deliver the public good is based on net utility sum?
Apublic good costs PLN 300. Three people vote on whether or not to deliver this good. The gross utilities from consumption of the public good for these individuals are as follows:Ua=-50,Ub=50,Uc=250. A.Who will pay the Vickrey-Groves-Clarke tax if a majority vote is applied? B.Who will pay the Vickrey-Groves-Clarke tax if the decision to deliver the public good is based on net utility sum?
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
Problem 2PA
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Apublic good costs PLN 300. Three people vote on whether or not to deliver this good. The gross utilities from consumption of the public good for these individuals are as follows:Ua=-50,Ub=50,Uc=250.
A.Who will pay the Vickrey-Groves-Clarke tax if a majority vote is applied?
B.Who will pay the Vickrey-Groves-Clarke tax if the decision to deliver the public good is based on net utility sum?
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