The Marginal Cost of Producing 40 Units of a Public

Multiple Choice

The marginal cost of producing 40 units of a public good is $200. There are two individuals in the society. Person A is willing to pay $80 for 40 units of the public good. If 40 units of the public good are provided, how much must Person B be willing to pay?

A) $0
B) $80
C) $120
D) $150