ZR
RPT
O2 = z
d
R
d
l1
RCS1
RCS2
l2
01
zdN
Figure 10.1. Efficient product mix and commodity
distribution in an economy with rival and nonrival goods.
zN
Total value
Aggregate total value curve
TV1
TV2
TV3
0
Quantity of an non-rival good
Figure 10.2. Individual and aggregate total value of a non-rival good.
Individual total
value curve
Marginal Value and marginal cost
Aggregate marginal
value curve
Marginal cost
curve
Individual
marginal
value
curves
0
Q
Quantity of an non-rival good
Figure 10.3. The efficient level of provision of a nonrival good.
Marginal Cost of Adding Additional Users
MC
0
Capacity
Constraint
Number of users
Figure 10.4. The marginal cost of adding additional users of a congestible good.
D
B
Price
P
A
R
C
D’
M
O
Z’
Z’’
Quantity
Figure 10.5. Price and output for a monopolist.
S
Price of the External Disectomy
D
O
Qº
Q*
Abatement
External Disectomy
Figure 10.6. The Coasian market solution, assuming zero
transaction costs and zero income effects.
Qº
O
Price of the External Disectomy
Dz
Sz
Df
Sf
Pf
Pz
O
Qz
Qf
Qº
Abatement
Figure 10.7. The Coasian market solution: The effect of nonzero income effects.
Df
Price of the External Disectomy
z
Dzt D
Pf
Pz
Sf
Sz
Sft
Pft
Pzt
O
Qzt Qz
Abatement
Qf
Qft
Figure 10.8. The Coasian market solution: The effect of
positive transactions costs and non-zero income effects.
Qº