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Anna, Bill and John each value the public project of building new hospitals deferentially. Anna has a demand for the public good QA-50-p, Bills demand is QB = 60-2p and John demand is QJ-30-0.5p.The marginal cost of providing hospitals is MC 20. Questions (a) What is the aggregate willingness to pay (social demand) for the public project? (Hint: will be a piece-wise function defined over three ranges of Q.) (b) What is the socially optimal provision of the public good in this case? (c) Which share of the tax burden would each of three people pay under Lindalh pricing?

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-140-3.S ate) A七 &sciae optinal: 사 undLyLindalh Annas have 七as

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