Answer the question on the basis of the following information for a public good. Pa and Pb are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. 
If the marginal cost of producing this good at the optimal quantity is $4, the optimal quantity must be
A) 1 unit.
B) 2 units.
C) 3 units.
D) 4 units.
Correct Answer:
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