Scenario: Ben and Nick Two Individuals, Ben and Nick, Are

Multiple Choice

Scenario: Ben and Nick Two individuals, Ben and Nick, are the only members of a hypothetical community.They have revealed the marginal private benefits they each receive from a public good whose marginal social benefit is known.In addition, the marginal social cost (MSC) of the public good is known and is constant.
(Scenario: Ben and Nick) Refer to the information and figure in the scenario Ben and Nick.At
Q₂, the marginal social benefit from the last unit of the public good:

A) is equal to the marginal social cost.
B) is equal to the sum of P₄ + P₃.
C) is the optimal level of public good provision.
D) does not benefit Nick very much.