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Answer the next question on the basis of the following information is for public good.Pa and Pb 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 (Qc) of the public good.Qs represents the quantity of the public good supplied by government at each of the collective prices.If only 1 unit of this public good is produced, then the marginal benefit is:
Short Run
A period in economic analysis where at least one factor of production is fixed, limiting adjustments to changes in demand or supply.
Long Run
A period in economics sufficient for all markets to reach equilibrium, where all inputs and outputs can be varied by firms, not constrained by existing physical capital.
ATC
Average Total Cost; the total cost per unit of output incurred when producing goods or services.
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