Answer the Question on the Basis of the Following Information

question 6

Multiple Choice

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

Mental Abilities

The capacity to perform cognitive tasks, process information, and understand concepts.

Whorf's Theory

A hypothesis in linguistics that suggests the structure of a language affects its speakers' worldview or cognition, also known as linguistic relativity.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.