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Consider an Economy with Two Consumers, Each with a Marginal

Question 2

Multiple Choice

Consider an economy with two consumers, each with a marginal benefit for a public good of MB = 20 - 1/2q.If the marginal cost of provision is $30 per unit, what is the efficient level of output?


A) 0
B) 10
C) 20
D) 40
E) 5

Correct Answer:

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