Answer the Next Question on the Basis of the Following

question 9

Multiple Choice

Answer the next question on the basis of the following information is for public good.P_a and P_b represent the prices that citizens (a) and (b) , the only two people in this nation, are willing to pay for additional units of a quantity (Q_c) of the public good.Q_s represents the quantity of the public good supplied by government at each of the collective prices.In equilibrium, the marginal benefit and cost of the public good will be:

• A)$7
• B)$6
• C)$5
• D)$3

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Definitions:

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