So a homework question so just hints would be appreciated.(adsbygoogle = window.adsbygoogle || []).push({});

we have each persons utility function as U_{i}= A^{ai}B_{i}

Solve for optimum level of the public good, both goods cost £1/unit

Ok do you use Lagrangian?

Do you need to express it in the set function way as in u_{i}[A^{a1}+A^{a2},(y_{i}- A^{ai})/p]

or do you already have the expression you need?

Thanks,

Josh

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# Optimal provision for a Public Good

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