Assume that the economy of Wonderland has only two individuals: Rhea and Ron.The table given below shows the marginal benefit received by these two individuals from the consumption of different units of a public good.Given that the marginal cost of producing the public good is $500,calculate the efficient amount of the public good to be produced.Also illustrate your answer graphically. $$\begin{array} { | c | c | c | }
\hline \text { Units } & \text { Rhea } & \text { Ron } \
\hline 0 & 400 & 700 \
\hline 1 & 300 & 600 \
\hline 2 & 200 & 500 \
\hline 3 & 100 & 400 \
\hline 4 & 0 & 300 \
\hline 5 & 0 & 200 \
\hline 6 & 0 & 100 \
\hline 7 & 0 & 0 \
\hline
\end{array}$$

Question

Assume that the economy of Wonderland has only two individuals: Rhea and Ron.The table given below shows the marginal benefit received by these two individuals from the consumption of different units of a public good.Given that the marginal cost of producing the public good is $500,calculate the efficient amount of the public good to be produced.Also illustrate your answer graphically. $$\begin{array} { | c | c | c | } 
\hline \text { Units } & \text { Rhea } & \text { Ron } \
\hline 0 & 400 & 700 \
\hline 1 & 300 & 600 \
\hline 2 & 200 & 500 \
\hline 3 & 100 & 400 \
\hline 4 & 0 & 300 \
\hline 5 & 0 & 200 \
\hline 6 & 0 & 100 \
\hline 7 & 0 & 0 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Assume that the economy of Wonderland has only two individuals: Rhea and Ron.The table given below shows the marginal benefit received by these two individuals from the consumption of different units of a public good.Given that the marginal cost of producing the public good is $500,calculate the efficient amount of the public good to be produced.Also illustrate your answer graphically. $$\begin{array} { | c | c | c | } 
\hline \text { Units } & \text { Rhea } & \text { Ron } \
\hline 0 & 400 & 700 \
\hline 1 & 300 & 600 \
\hline 2 & 200 & 500 \
\hline 3 & 100 & 400 \
\hline 4 & 0 & 300 \
\hline 5 & 0 & 200 \
\hline 6 & 0 & 100 \
\hline 7 & 0 & 0 \
\hline
\end{array}$$

Assume That the Economy of Wonderland Has Only Two Individuals