Answer this question based on the following information for a public good. Pₐ and Pᵦ 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. Qₛrepresents 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 $3.
Correct Answer:
Verified
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