-Mike, Joe, and Sam Are Roommates

question 148

Multiple Choice

-Mike, Joe, and Sam are roommates. They need lamps for their common living room. Lamps in their living room are a public good for these roommates. The marginal benefit that each individual receives from varying numbers of lamps in the living room is given in the table above. If the marginal cost of a lamp is 13, what is the efficient number of lamps for the roommates to purchase?

• A) 0
• B) 1
• C) 2
• D) 5

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Definitions:

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding over the lifespan.

Underestimated

To judge something to be smaller or less important than it actually is.

Overregularization

A language development error where children apply standard grammatical rules incorrectly to irregular verbs or nouns.

Preschool

An early childhood educational setting designed for children prior to the age that they begin compulsory education at primary school.