Price at a ~ a PA P₁ 0 a d e S b Q₁ Q₂ Q3 4 Collective quantity demanded and supplied Refer to the above supply and demand graph for a public good. Assume that the economy currently produces this public good at a quantity Q 3. Based on this information we can conclude that the: O a. total benefit of this public good is less than the total cost, so society should produce less of the good. O b. total benefit of this public good is greater than the total cost, so society should produce more of the good. O c. marginal benefit of this public good is greater than the marginal cost, so society should produce less of the good. Od.marginal benefit of this public good is less than the marginal cost, so society should produce less of the good.
Price at a ~ a PA P₁ 0 a d e S b Q₁ Q₂ Q3 4 Collective quantity demanded and supplied Refer to the above supply and demand graph for a public good. Assume that the economy currently produces this public good at a quantity Q 3. Based on this information we can conclude that the: O a. total benefit of this public good is less than the total cost, so society should produce less of the good. O b. total benefit of this public good is greater than the total cost, so society should produce more of the good. O c. marginal benefit of this public good is greater than the marginal cost, so society should produce less of the good. Od.marginal benefit of this public good is less than the marginal cost, so society should produce less of the good.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
Problem 2PA
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