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Question 166

Multiple Choice

Use the following to answer questions :
Scenario: Ben and Nik
Ben and Nik are the only members of a community.They have revealed the marginal private benefits they each receive from a public good whose marginal social benefit is known.In addition,the marginal social cost (MSC) of the public good is known and is constant. Use the following to answer questions : Scenario: Ben and Nik Ben and Nik are the only members of a community.They have revealed the marginal private benefits they each receive from a public good whose marginal social benefit is known.In addition,the marginal social cost (MSC) of the public good is known and is constant.   -(Scenario: Ben and Nik) Use Scenario: Ben and Nik.At Q<sub>2</sub> in the figure,the marginal social benefit from the last unit of the public good is: A)  equal to the marginal social cost. B)  equal to P<sub>4</sub> + P<sub>3</sub>. C)  the optimal level of provision of the public good. D)  zero for Nik.
-(Scenario: Ben and Nik) Use Scenario: Ben and Nik.At Q2 in the figure,the marginal social benefit from the last unit of the public good is:


A) equal to the marginal social cost.
B) equal to P4 + P3.
C) the optimal level of provision of the public good.
D) zero for Nik.

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