題組內容

5. Assume that there are only two people in society. The demand curve for person \( A \) for mosquito control is given by \( q_A = 100 - P \). For person \( B \), the demand curve for mosquito control is given by \( q_B = 200 - P \). This activity could be produced at a constant marginal cost of $50 per unit.

b. Now, suppose mosquito control is a public good. Once it is produced everyone can benefit from it. What would be the optimal level of this activity? (5%)