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Answer the Next Question on the Basis of the Following

Question 77

Multiple Choice

Answer the next question on the basis of the following information is for public good.Pa and Pb represent the prices that citizens (a) and (b) , the only two people in this nation, are willing to pay for additional units of a quantity (Qc) of the public good.Qs represents the quantity of the public good supplied by government at each of the collective prices.If only 1 unit of this public good is produced, then the marginal benefit is: Answer the next question on the basis of the following information is for public good.P<sub>a</sub> and P<sub>b</sub> represent the prices that citizens (a)  and (b) , the only two people in this nation, are willing to pay for additional units of a quantity (Q<sub>c</sub>)  of the public good.Q<sub>s</sub> represents the quantity of the public good supplied by government at each of the collective prices.If only 1 unit of this public good is produced, then the marginal benefit is:   A) $3 and the marginal cost is $9. B) $4 and the marginal cost is $7. C) $6 and the marginal cost is $3. D) $9 and the marginal cost is $5.


A) $3 and the marginal cost is $9.
B) $4 and the marginal cost is $7.
C) $6 and the marginal cost is $3.
D) $9 and the marginal cost is $5.

Correct Answer:

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