The Marginal Cost of Producing 25 Units of a Public

question 33

Multiple Choice

The marginal cost of producing 25 units of a public good is $100. There are two individuals in the society. Person A is willing to pay $40 for 25 units of the public good. If 25 units of the public good are provided, then Person B must be willing to pay

• A) $0.
• B) $40.
• C) $60.
• D) $75.