Pa and Pb represent the prices that citizens (a) and (b) ,the only two people in this nation,are willing to pay for additional units of a quantity (Qc) of the public good.Qs represents the quantity of the public good supplied by government at each of the collective prices. Refer to the above information.If the collective willingness to pay for an additional unit of this public good is $6,then the collective quantity demanded will be:
A) 1 unit and the socially optimal quantity supplied will be 5 units.
B) 2 units and the socially optimal quantity supplied will be 4 units.
C) 3 units and the socially optimal quantity supplied will be 3 units.
D) 4 units and the socially optimal quantity supplied will be 2 units.
Correct Answer:
Verified
Q16: With allocative efficiency:
A) the state of technology-or
Q17: Allocative efficiency means that:
A) the law of
Q18: Which of the following is most likely
Q19: Which is an example of a market
Q20: Private goods are characterized by:
A) rivalry and
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