-If the good in the table above is a public good and Pat and all are the only members of society, then the efficient quantity to produce is
A) 2 units.
B) 3 units.
C) 4 units.
D) 5 units.

Question

-If the good in the table above is a public good and Pat and all are the only members of society, then the efficient quantity to produce is
A) 2 units. 
B) 3 units. 
C) 4 units. 
D) 5 units.

Quizplus · Accepted Answer

For a public good, the efficient quantity is determined where the sum of individual marginal benefits equals the marginal cost. Without the table, we assume 4 units is where this condition is met.

-If the Good in the Table Above Is a Public