(Scenario: Ben and Nik)Use Scenario: Ben and Nik.At all levels of provision of the public good: 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.
A)Ben places a higher value on the public good than Nik.
B)the MSC is less than the MSB.
C)the optimal level is not attained.
D)the private marginal benefits cannot be determined.

Question

(Scenario: Ben and Nik)Use Scenario: Ben and Nik.At all levels of provision of the public good: 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. 
A)Ben places a higher value on the public good than Nik. 
B)the MSC is less than the MSB. 
C)the optimal level is not attained. 
D)the private marginal benefits cannot be determined.

Quizplus · Accepted Answer

The Answer of (Scenario: Ben and Nik)Use Scenario: Ben and Nik.At all levels of provision of the public good: 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. 
A)Ben places a higher value on the public good than Nik. 
B)the MSC is less than the MSB. 
C)the optimal level is not attained. 
D)the private marginal benefits cannot be determined.