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 efficient number of the public good if the marginal social cost of making the public good available is RM350? Explain your answer.
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 efficient number of the public good if the marginal social cost of making the public good available is RM350? Explain your answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 efficient number of the public good if the marginal
social cost of making the public good available is RM350? Explain your answer.
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