Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Scenario: Ben and Nick
Ben and Nick are the only members of a 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) Look at the figure and 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 P₄ + P₃.
C) is the optimal level of provision of the public good.
D) does not benefit Nick very much.