There Are Three Consumers of a Public Good; Their Marginal

question 83

Multiple Choice

There are three consumers of a public good; their marginal benefits are given by:
Consumer 1: MB = 400 - Q
Consumer 2: MB = 200 - 2Q
Consumer 3: MB = 600 - Q
Where Q is the quantity of the public good. The marginal cost of the public good is MC = 600 + 296Q. What is the socially optimal quantity?

• A) 6
• B) 2
• C) 3
• D) 1

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Definitions:

Sex

Biological and physiological characteristics that define humans as male or female.

Alarm Reaction

The initial response of the body's stress system, activating the fight or flight response to perceive threats.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body has to long-term exposure to stress, proposed by Hans Selye.

Posttraumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by severe anxiety, flashbacks, and uncontrollable thoughts about the event.