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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Exercise 5: Public Goods Consider an economy with two goods, a public good [1} and labor [rt]. individual utilit},r is given
by Hi = In{m] + P where m = £1 + $3 and F = 241 — n‘. There is a oompetitive market producing
the public good using the teehhelegy: e = 31= 3th! + h”). {a} Find the equilibrium allocation and prices. [b] 15 the equilibrium allocation that you found above, efficient? Justifyr
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