Multiple Choice
Suppose that the economy is composed of two individuals, A and B. Their respective demand curves for a public good, y, are given by: yA = 50 - p/2 and yB = 25 - p. The marginal social value (MSV) function is:
A) MSV = 75 - 3p/2.
B) MSV = 75 - y.
C) MSV = 125 - 3y.
D) MSV = 25 + p/2.
Correct Answer:
Verified
Correct Answer:
Verified
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