Suppose That a Private-Sector Firm Produces Two Goods: Good 1

question 9

Multiple Choice

Suppose that a private-sector firm produces two goods: Good 1 is a private good and Good 2 is a public good. Which of the following statements is true?

• A) If a consumer spends more money on Good 1, she gets more Good 1.
• B) If a consumer spends more money on Good 2, she gets more Good 2.
• C) If a consumer spends less money on Good 1, she gets less Good 2.
• D) If a consumer spends less money on Good 2, she gets less Good 1.