Suppose That Mick and Cher Are the Only Two Members

question 1

Multiple Choice

Suppose that Mick and Cher are the only two members of society and are willing to pay $10 and $8, respectively, for the third unit of a public good. Also, assume that the marginal cost of the third unit is $17. We can conclude that

• A)the third unit should not be produced.
• B)the third unit should be produced.
• C)zero units should be produced.
• D)4 units should be produced.

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