Multiple Choice
Sue and Mark are the only two members of a community.Sue's marginal benefit from one lighthouse is $2,000 and Mark's marginal benefit is $1,000.If the marginal cost of one lighthouse is $2,500 and if a lighthouse is a public good,then for efficiency the lighthouse should
A) be built but only Sue should be allowed to use it.
B) be built but only Mark should be allowed to use it.
C) be built and both Sue and Mark should be allowed to use it.
D) not be built because its marginal cost exceeds Sue's marginal benefit.
E) not be built because its marginal cost exceeds both Sue's and Mark's marginal benefit.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: What is the free-rider problem? What results
Q134: The efficient quantity of a public good
Q136: Suppose the marginal cost of the fourth
Q137: A common resource is used efficiently if<br>A)
Q138: If I order a pizza and invite
Q140: For any individual consumer,free-riding is<br>A) common for
Q141: Which of the following applies to the
Q144: In which of the following cases does
Q346: "The problem with a common resource is
Q417: How does the government determine the quota