Answer the Question Based on the Following Information for a Public

question 255

Multiple Choice

Answer the question based on the following information for a public good. Pₐ and Pᵦ are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. If the marginal cost of producing this good at the optimal quantity is $4, the optimal quantity must be

• A)1 unit.
• B)2 units.
• C)3 units.
• D)4 units.

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Definitions:

Supply Chain Function

The activities and operations undertaken by entities within a supply chain, from procurement of raw materials to delivery of finished goods.

Shipping Company

A business that provides services for transporting goods by sea, air, or land, from one location to another.

Flow Management

The process of overseeing and regulating the movement of goods, services, and information through the supply chain.

Pricing Department

A division within a company responsible for setting prices for products or services based on market research, cost analysis, and competitive strategies.