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The Diagram Below Shows the Marginal Benefit and Marginal Cost

Question 22

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The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits.
The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits. FIGURE 16- 4 -Refer to Figure 16- 4.Suppose the optimal amount of this good is provided,but that Individual B was only consuming Q2 units of the good.What would be the marginal cost of Individual B consuming an extra unit of this good? A) P4- P2. B) MB. C) P4. D) P2. E) approximately zero. FIGURE 16- 4
-Refer to Figure 16- 4.Suppose the optimal amount of this good is provided,but that Individual B was only consuming Q2 units of the good.What would be the marginal cost of Individual B consuming an extra unit of this good?


A) P4- P2.
B) MB.
C) P4.
D) P2.
E) approximately zero.

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