-Suppose Two Individuals, Pooh and Piglet, Desire Protection (Provided by Tigger)

question 65

Multiple Choice

-Suppose two individuals, Pooh and Piglet, desire protection (provided by Tigger) for their community, The Hundred Acre Wood, from heffalumps. Protection is a public good. The marginal cost of protection as well as Piglet's and Pooh's marginal benefits from protection are in the table above. What is the quantity of protection that achieves the maximum net benefit?

• A) 1 hour per day
• B) 2 hours per day
• C) 3 hours per day
• D) 4 hours per day

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Definitions:

Ethics

A branch of philosophy dealing with moral principles and values governing individual and group behavior.

Good

An item or product that is manufactured or produced for sale, or anything that serves a need or desire.

Right

A moral or legal entitlement to have or obtain something or to act in a certain way.

Central Authority

The main governing body or agency in a political or administrative system responsible for overseeing implementation of certain rules or policies.