-Refer to the Above Supply and Demand Graph for a Public

question 42

Multiple Choice

-Refer to the above supply and demand graph for a public good.Line segment da represents the amount at Q₁ by which the

• A) marginal benefit of this public good is less than the marginal cost.
• B) total benefit of this public good is less than the total cost.
• C) marginal benefit of this public good is greater than the marginal cost.
• D) total benefit of this public good is greater than the total cost.
• E) marginal benefit equals the marginal cost of the public good.

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Definitions:

National League

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