Multiple Choice
Figure: An Individual's Marginal Benefit from a Public Good
(Figure: An Individual's Marginal Benefit from a Public Good) Look at the figure An Individual's Marginal Benefit from a Public Good.Assume that two individuals will share consumption of a public good; each individual has the same marginal benefit curve as the one shown in the figure.If the marginal cost of the good is $24, what is the level of this public good that would maximize society's welfare?
A) 0 units
B) 8 units
C) 12 units
D) 16 units
Correct Answer:
Verified
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