Consider an Economy with Two Consumers, Each with a Marginal

question 5

Multiple Choice

Consider an economy with two consumers, each with a marginal benefit for a public good of MB = 20 - 1/2q.The marginal cost of providing the good is $10 per unit.How many units are supplied in the private-sector market?

• A)0
• B)10
• C)20
• D)40
• E)5

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Definitions:

Cognitive Labeling

The process by which individuals interpret their emotions based on the context of their situation.

Self-perception

The process through which individuals interpret their own behavior and form attitudes and beliefs about themselves.

Arousal

A physiological and psychological state of being awake or reactive to stimuli.

Self-awareness Theory

A psychological theory suggesting that individuals become more introspective and evaluative of their own behavior when they are made self-aware.