Suppose the Marginal Cost of the Fourth Unit of a Public

Multiple Choice

Suppose the marginal cost of the fourth unit of a public good is $20. If Mark and Judy are the only members of society, and they are willing to pay $10 and $11, respectively, for the fourth unit of the good, then the efficient quantity is

A) 4 or more units.
B) zero units.
C) 3 units.
D) More information is needed about the marginal benefits of the first, second and third units of the public good.
E) None of the above answers is correct.