Answer this question based on the following information for a public good. 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. Qc Pa Pb Qs 1 $4 $5 5 2 3 4 4 3 2 4 3 4 2 3 2 5 1 2 1 If only 1 unit of this public good is produced, then the marginal benefit is Multiple Choice $3, and the marginal cost is $9. $9, and the marginal cost is $3. $6, and the marginal cost is $3. $4, and the marginal cost is $7.
Answer this question based on the following information for a public good. 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. Qc Pa Pb Qs 1 $4 $5 5 2 3 4 4 3 2 4 3 4 2 3 2 5 1 2 1 If only 1 unit of this public good is produced, then the marginal benefit is Multiple Choice $3, and the marginal cost is $9. $9, and the marginal cost is $3. $6, and the marginal cost is $3. $4, and the marginal cost is $7.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer this question based on the following information for a public good. 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.
Qc | Pa | Pb | Qs |
1 | $4 | $5 | 5 |
2 | 3 | 4 | 4 |
3 | 2 | 4 | 3 |
4 | 2 | 3 | 2 |
5 | 1 | 2 | 1 |
If only 1 unit of this public good is produced, then the marginal benefit is
Multiple Choice
-
$3, and the marginal cost is $9.
-
$9, and the marginal cost is $3.
-
$6, and the marginal cost is $3.
-
$4, and the marginal cost is $7.
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