Answer the question based on the following information for a public good. Pₐ and Pᵦ are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. If the marginal cost of producing this good at the optimal quantity is $2, the optimal quantity must be
A)5 units.
B)3 units.
C)1 unit.
D)2 units.
E)4 units.

Question

Answer the question based on the following information for a public good. Pₐ and Pᵦ are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society.  If the marginal cost of producing this good at the optimal quantity is $2, the optimal quantity must be
A)5 units. 
B)3 units. 
C)1 unit. 
D)2 units. 
E)4 units.

Quizplus · Accepted Answer

The Answer of Answer the question based on the following information for a public good. Pₐ and Pᵦ are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society.  If the marginal cost of producing this good at the optimal quantity is $2, the optimal quantity must be
A)5 units. 
B)3 units. 
C)1 unit. 
D)2 units. 
E)4 units.

Answer the Question Based on the Following Information for a Public