Sue and Mark Are the Only Two Members of a Community.Sue's

question 139

Multiple Choice

Sue and Mark are the only two members of a community.Sue's marginal benefit from one lighthouse is $2,000 and Mark's marginal benefit is $1,000.If the marginal cost of one lighthouse is $2,500 and if a lighthouse is a public good,then for efficiency the lighthouse should

• A) be built but only Sue should be allowed to use it.
• B) be built but only Mark should be allowed to use it.
• C) be built and both Sue and Mark should be allowed to use it.
• D) not be built because its marginal cost exceeds Sue's marginal benefit.
• E) not be built because its marginal cost exceeds both Sue's and Mark's marginal benefit.

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Definitions:

Time Differences

Variations or intervals between times, often used to compare durations or to calculate the delay between events.

Locked-Rotor Starting

A condition in electric motors where the rotor is not allowed to rotate while full starting current is applied, used to analyze the starting torque and current of motors.

Operating Characteristics

The specific conditions or parameters within which a device or system is designed to function, such as voltage, speed, and temperature ranges.

Compressors

Mechanical devices that increase the pressure of a gas by reducing its volume, commonly used in air conditioning, refrigeration, and pneumatic applications.