Consider an Economy with Three Consumers, Each with a Marginal

question 7

Multiple Choice

Consider an economy with three consumers, each with a marginal benefit for a public good of MB = 10 - q.If the marginal cost of providing the good is $15 per unit, what is the efficient level of output?

• A)30
• B)20
• C)10
• D)5
• E)15

---

Definitions:

Income From Operations

Earnings derived from a company's primary business activities before taxes and extraordinary items.

Periodic Inventory System

An accounting method where inventory is updated in the accounting records periodically, often used by smaller businesses due to its simplicity.

Cost Of Merchandise

The purchase price of goods sold by a company, including the cost of acquiring the goods plus any additional expenses to bring them to saleable condition.

Freight In

The cost associated with transporting goods into a business, typically included in the cost of goods sold calculation.