There Are Four Lighthouses on the Island of Sand

question 202

Multiple Choice

There are four lighthouses on the island of Sand. If this is the efficient quantity of lighthouses

• A) the marginal social benefit of the fourth lighthouse equals its marginal social cost.
• B) total social benefit is zero.
• C) marginal social benefit minus marginal social cost is a maximum.
• D) Both answers A and C are correct.

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