Use the following to answer questions :
Scenario: Ben and Nik
Ben and Nik are the only members of a community.They have revealed the marginal private benefits they each receive from a public good whose marginal social benefit is known.In addition,the marginal social cost (MSC)of the public good is known and is constant.
-(Scenario: Ben and Nik)Use Scenario: Ben and Nik.At all levels of provision of the public good:
A) Ben places a higher value on the public good than Nik.
B) the MSC is less than the MSB.
C) the optimal level is not attained.
D) the private marginal benefits cannot be determined.

Question

Use the following to answer questions :
Scenario: Ben and Nik
Ben and Nik are the only members of a community.They have revealed the marginal private benefits they each receive from a public good whose marginal social benefit is known.In addition,the marginal social cost (MSC)of the public good is known and is constant. 
-(Scenario: Ben and Nik)Use Scenario: Ben and Nik.At all levels of provision of the public good:
A) Ben places a higher value on the public good than Nik. 
B) the MSC is less than the MSB. 
C) the optimal level is not attained. 
D) the private marginal benefits cannot be determined.

Quizplus · Accepted Answer

The Answer of Use the following to answer questions :
Scenario: Ben and Nik
Ben and Nik are the only members of a community.They have revealed the marginal private benefits they each receive from a public good whose marginal social benefit is known.In addition,the marginal social cost (MSC)of the public good is known and is constant. 
-(Scenario: Ben and Nik)Use Scenario: Ben and Nik.At all levels of provision of the public good:
A) Ben places a higher value on the public good than Nik. 
B) the MSC is less than the MSB. 
C) the optimal level is not attained. 
D) the private marginal benefits cannot be determined.

Use the Following to Answer Questions