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The Diagram Below Shows the Marginal Benefit and Marginal Cost

Question 84

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The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits. The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits. FIGURE 16-4 -Refer to Figure 16-4.Suppose the optimal amount of this good is provided,but that Individual B was only consuming Q<sub>2</sub> units of the good.What would be the marginal cost of Individual B consuming an extra unit of this good? A) P<sub>2</sub> B) P<sub>4</sub> C) P<sub>4</sub>-P<sub>2</sub> D) MB E) zero FIGURE 16-4
-Refer to Figure 16-4.Suppose the optimal amount of this good is provided,but that Individual B was only consuming Q2 units of the good.What would be the marginal cost of Individual B consuming an extra unit of this good?


A) P2
B) P4
C) P4-P2
D) MB
E) zero

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