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The Diagram Below Shows the Marginal Benefit and Marginal Cost

Question 77

Multiple Choice

The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits. The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits. FIGURE 16-4 -Refer to Figure 16-4.Once some quantity of this public good is provided,the efficient price to charge for its use is A) approximately zero. B) P<sub>1</sub>. C) P<sub>2</sub>. D) P<sub>3</sub>. E) P<sub>4</sub>. FIGURE 16-4
-Refer to Figure 16-4.Once some quantity of this public good is provided,the efficient price to charge for its use is


A) approximately zero.
B) P1.
C) P2.
D) P3.
E) P4.

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