Figure: an Individual's Marginal Benefit from a Public Good

question 232

Multiple Choice

Figure: An Individual's Marginal Benefit from a Public Good (Figure: An Individual's Marginal Benefit from a Public Good) Look at the figure An Individual's Marginal Benefit from a Public Good.Assume that two individuals will share consumption of a public good; each individual has the same marginal benefit curve as the one shown in the figure.If the marginal cost of the good is $8, what is the level of this public good that will maximize society's welfare?

• A)0 units
• B)8 units
• C)12 units
• D)16 units

---

Definitions:

Problem Solving

The process of identifying a challenge and finding an effective solution to overcome it.

Spring Formal

A social event or dance typically held in the spring, often by schools or colleges, where attendees dress in formal wear.

Forming Subgoals

The strategy of breaking down a primary goal into smaller, more manageable objectives or tasks to facilitate achievement of the main goal.

Heuristic

Cognitive strategies or "rules of thumb" used for problem-solving that are not guaranteed to be optimal or perfect but are sufficient for reaching an immediate goal.