Answer This Question Based on the Following Information for a Public

question 143

Multiple Choice

Answer this question based on the following information for a public good. Pₐ and Pᵦ represent the prices that citizens (a) and (b) , the only two people in this nation, are willing to pay for additional units of a quantity (Q_c ) of the public good. Qₛrepresents the quantity of the public good supplied by government at each of the collective prices. If only 1 unit of this public good is produced, then the marginal benefit is

• A)$3, and the marginal cost is $9.
• B)$4, and the marginal cost is $7.
• C)$6, and the marginal cost is $3.
• D)$9, and the marginal cost is $3.

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Definitions:

Factory Overhead

All costs related to production that are not direct materials or direct labor costs.

Conversion Cost

Conversion cost is the combination of labor and manufacturing overhead costs incurred to convert raw materials into finished goods.

Equivalent Unit

A concept used in process costing that converts partially completed units into a number of fully completed units.

Factory Overhead

encompasses all the indirect costs associated with manufacturing, excluding direct labor and direct materials, such as utilities, depreciation, and maintenance.