Multiple Choice
Answer the question based on the following information for a public good. Pₐ and Pᵦ are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. If the marginal cost of producing this good at the optimal quantity is $2, the optimal quantity must be
A) 5 units.
B) 3 units.
C) 1 unit.
D) 2 units.
E) 4 units.
Correct Answer:

Verified
Correct Answer:
Verified
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