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Suppose 10 Citizens Each Derive Marginal Benefit from Traffic Lights

Question 120

Multiple Choice

Suppose 10 citizens each derive marginal benefit from traffic lights according to the function MB = 10 - Q.If traffic lights cost $10 each to produce,what is the efficient quantity of traffic lights?


A) 9 traffic lights
B) 12 traffic lights
C) 8 traffic lights
D) 1 traffic light

Correct Answer:

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