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 GoodMarginal Benefit: 1 2 3 4 Athirah 175150125100Dewi 15012510075Chin 1251007550John 100755025 What is the total cost of the public good that needs to be financed if the marginal social cost is RM350? Explain your answer.

A public good is a good which is both non-excludable as well as non-rivalrous in nature.

Answered: Public Good

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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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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