Assume There Are Two People in a Society

Multiple Choice

Assume there are two people in a society. Person A is willing to pay $140 to have one unit of a public good produced and Person B is willing to pay $160 to have one unit of a public good produced and $140 to have two units produced. As a result, society would be willing to pay a price of ________ of this public good.

A) $300 for 1 unit
B) $200 for 3 units
C) $200 for 1 unit
D) $160 for 5 units