Ed, Mike, and Scott Are the Only Three People in a Community

question 36

Multiple Choice

Ed, Mike, and Scott are the only three people in a community and Ed is willing to pay $20 for the 5^th unit of a public good; Mike, $15; Scott, $25.The government should produce the 5^th unit of the public good if the marginal cost is:

• A)less than $150.
• B)less than $100.
• C)less than $60.
• D)less than $300.

---

Definitions:

Financial Transactions

The process of exchanging one asset for another, typically involving the transfer of money between parties in the business or financial context.

Financial Statements

Official records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Government Accountant

A financial expert who works within the public sector, managing and auditing the accounts of government agencies and ensuring compliance with legal requirements.

Public Funds

Resources collected by government bodies through taxation, fees, fines, and other means, intended for public use and expenditure.