The Diagram Below Shows the Marginal Benefit and Marginal Cost

question 54

Multiple Choice

The diagram below shows the marginal benefit and marginal cost of a public good.This economy has 3 individuals,A,B and C.The diagram shows the MB for each individual and a summation of their marginal benefits.
FIGURE 16-4
-Refer to Figure 16-4.Suppose the government provides Q4 units of the public good.If the government was able to require consumers to pay a price of P1,then

• A)the market would clear,although not enough would be produced.
• B)an inefficient quantity would be being produced.
• C)consumers would use too little of the public good,and the outcome would be inefficient for society.
• D)consumers would not use the public good at all,and this would be socially optimal.
• E)the appropriate price would be achieved,although not enough would be consumed.

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Definitions:

Gender Schemas

Cognitive structures that form the basis for understanding gender concepts and roles, influencing how individuals perceive and interact with others based on gender assumptions.

Sex Chromosomes

Chromosomes, typically designated as X or Y, that determine the biological sex of an organism.

Y Chromosome

The sex chromosome typically associated with male characteristics in humans and most other mammals.

X Chromosome

One of the two sex chromosomes, X and Y, that determine biological sex, with females typically having two X chromosomes.