Solved

Answer This Question on the Basis of the Following Information

Question 218

Multiple Choice

Answer this question on the basis of the following information for a public good. Pa and Pb represent the prices that citizens (a) and (b) , the only two people in this nation, are willing to pay for additional units of a quantity (Qc) of the public good. Qs represents the quantity of the public good supplied by government at each of the collective prices. Answer this question on the basis of the following information for a public good. P<sub>a</sub><sub> </sub>and P<sub>b</sub><sub> </sub>represent the prices that citizens (a) and (b) , the only two people in this nation, are willing to pay for additional units of a quantity (Q<sub>c</sub>) of the public good. Q<sub>s</sub><sub> </sub>represents the quantity of the public good supplied by government at each of the collective prices. If only 1 unit of this public good is produced, then the marginal benefit is A) $3, and the marginal cost is $9. B) $4, and the marginal cost is $7. C) $6, and the marginal cost is $3. D) $9, and the marginal cost is $3. If only 1 unit of this public good is produced, then the marginal benefit is


A) $3, and the marginal cost is $9.
B) $4, and the marginal cost is $7.
C) $6, and the marginal cost is $3.
D) $9, and the marginal cost is $3.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q10: A negative externality or spillover cost occurs

Q24: Which of the following conditions does not

Q60: If a good that generates negative externalities

Q79: An emission fee levied against polluting firms

Q169: Oftentimes, the socially optimal quantity for a

Q215: Market failures refer to those situations where

Q219: When producers (say, of roads) are not

Q221: Cost-benefit analysis is frequently difficult to apply

Q223: Among the following examples, the one that

Q232: Government can reallocate resources away from private