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Suppose That an Economy Has Four People,A,B,C,and D,whose Reported Marginal

Question 40

Multiple Choice

Suppose that an economy has four people,A,B,C,and D,whose reported marginal benefits from a public good are $30,$40,$50,and $60,respectively.If the marginal cost of the public good is $150,then the quantity of the public good produced should be:


A) increased even if none of the individuals are excluded.
B) increased only if individual A can be excluded.
C) decreased even if none of the individuals are excluded.
D) decreased unless individual A or B can be excluded.

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