Alex, Kara, and Susie Are the Only Three People in a Community

Multiple Choice

Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $40 for the third unit of a public good; Kara is willing to pay $25. If the marginal cost of producing the third unit is $100, what is the
Minimum amount that Susie must be willing to pay for it to be efficient for government to produce the third
Unit?

A) $35
B) $100
C) $65
D) The amount cannot be determined with the information provided.