Answer This Question on the Basis of the Following Information

question 218

Multiple Choice

Answer this question on the basis of the following information for a public good. P_a and P_b 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. Q_s represents 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:

Remuneration

Payment or compensation received for services rendered or work performed.

Terminate

To bring something to an end or conclude its operation.

Paraphrasing

The act of rewording a text or passage to express the same meaning in a different way, often to clarify or simplify.

Sender's Message

The information or content that an individual or entity intends to communicate to a recipient.