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Answer the Question Based on the Following Information for a Public

Question 116

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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. 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. 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.

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