Assume there are two people in a society. Person A is willing to pay $70 to have one unit of a public good produced and Person B is willing to pay $80 to have one unit of a public good produced and $70 to have two units produced. As a result, for ________ unit(s) of this public good, society would be willing to pay a price of ________.
A) 1; $150
B) 3; $100
C) 1; $100
D) 5; $80

Question

Quizplus · Accepted Answer

For one unit of the public good, Person A is willing to pay $70 and Person B is willing to pay $80, totaling $150.

Assume There Are Two People in a Society