The Following Information Is for a Public Good

question 123

Multiple Choice

The following information is for a public good.P_a and P_b are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it.These people are the only two members of society.Refer to the data below.If the marginal cost of this good at the optimal quantity is $4, the optimal quantity must be:

• A)1 unit.
• B)2 units.
• C)3 units.
• D)4 units.

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Definitions:

Shaping Behavior

The process of guiding or directing behaviors by reinforcing successive approximations towards a desired response or action.

Methodological Approach

A systematic way of addressing a problem or question through specified procedures or techniques within research or analysis.

Physiological Measurements

Objective methods of assessing physical or biological variables in the human body, often used in medical and psychological research.

Cognitive Processes

Mental activities involved in acquiring, storing, and using knowledge, such as perception, memory, and reasoning.