Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Q3. The following table shows the marginal benefits of a pure public good that can be enjoyed by four people in a community, Athirah, Dewi, Chin, and John.
|
|
Number of Public Good |
||
Marginal Benefit: |
1 |
2 |
3 |
4 |
Athirah |
175 |
150 |
125 |
100 |
Dewi |
150 |
125 |
100 |
75 |
Chin |
125 |
100 |
75 |
50 |
John |
100 |
75 |
50 |
25 |
|
|
|
|
|
- What is the total cost of the public good that needs to be financed if the marginal
social cost is RM350? Explain your answer.
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