Suppose That the Economy Is Composed of Two Individuals, a and B

question 35

Multiple Choice

Suppose that the economy is composed of two individuals, A and B. Their respective demand curves for a public good, y, are given by: y_A = 50 - p/2 and y_B = 25 - p. Suppose the MC of providing the public good is given by MC = 10 + 2y. A social optimum is achieved if:

• A)y = 21.7.
• B)y = 30.
• C)y = 23.
• D)y = 15.

---

Definitions:

Task Behavior

The actions and activities undertaken by individuals or teams directed towards the completion of a specific task or assignment.

Situational Leadership

A leadership style that involves adjusting one's approach based on the maturity and competency of the team members.

Relationship Behavior

How individuals act or interact in their personal or professional relationships, influenced by emotions, communication patterns, and social dynamics.

High-Performance

Describes systems, organizations, teams, or individuals that achieve superior results relative to their goals and resources.