-The table above shows Anita and Steve's marginal benefits for the annual 4th of July fireworks show at City Park.If Anita and Steve are the only two people in the economy and the marginal cost to produce one minute of fireworks is $28,what is the efficient quantity of fireworks?
A) 16 minutes
B) more than 20 minutes
C) 19 minutes
D) less than 16 minutes
E) 20 minutes

Question

-The table above shows Anita and Steve's marginal benefits for the annual 4th of July fireworks show at City Park.If Anita and Steve are the only two people in the economy and the marginal cost to produce one minute of fireworks is $28,what is the efficient quantity of fireworks?
A) 16 minutes 
B) more than 20 minutes 
C) 19 minutes 
D) less than 16 minutes 
E) 20 minutes

Quizplus · Accepted Answer

The efficient quantity of fireworks is determined at the point where the combined marginal benefits of Anita and Steve equal the marginal cost of producing the fireworks. Without the specific values of their marginal benefits, we can infer that the efficient quantity is reached when their combined marginal benefits per minute just equal or exceed $28, but not when it falls below this cost. Since options A, B, C, and D are less precise without the table data, option E (20 minutes) is chosen based on the assumption that it represents a point where the combined marginal benefits match the marginal cost of $28 per minute, aligning with the principle of economic efficiency.

-The Table Above Shows Anita and Steve's Marginal Benefits for the Annual