Figure: Market Failure (Figure: Market Failure) Look at the figure Market Failure.Suppose the supply curve represents the marginal cost of providing street lights in a neighborhood that is composed of two people, Ann and Joe.The demand curve represents the marginal benefit that Ann receives from the street lights.Suppose that Joe's marginal benefit from the street lights is a constant amount equal to AC.The marginal social benefit of G street lights is
A)0
B)A
C)B
D)C

Question

Figure: Market Failure  (Figure: Market Failure) Look at the figure Market Failure.Suppose the supply curve represents the marginal cost of providing street lights in a neighborhood that is composed of two people, Ann and Joe.The demand curve represents the marginal benefit that Ann receives from the street lights.Suppose that Joe's marginal benefit from the street lights is a constant amount equal to AC.The marginal social benefit of G street lights is
A)0 
B)A 
C)B 
D)C

Quizplus · Accepted Answer

The Answer of Figure: Market Failure  (Figure: Market Failure) Look at the figure Market Failure.Suppose the supply curve represents the marginal cost of providing street lights in a neighborhood that is composed of two people, Ann and Joe.The demand curve represents the marginal benefit that Ann receives from the street lights.Suppose that Joe's marginal benefit from the street lights is a constant amount equal to AC.The marginal social benefit of G street lights is
A)0 
B)A 
C)B 
D)C

Figure: Market Failure (Figure: Market Failure) Look at the Figure