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Business, 17.04.2020 03:53 wolfking800

Suppose that preferences over private consumption C and public goods G are such that these two goods are perfect substitutes, that is, the marginal rate of substitution of public goods for private goods is a constant b > 0. Determine the optimal quantity of public goods that the government should provide, and interpret your results. What happens when b changes, or when q changes?

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Suppose that preferences over private consumption C and public goods G are such that these two goods...
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