$$\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 30 \\2 & 28 \\3 & 26 \\4 & 24 \\5 & 22\end{array}$$

question 40

Multiple Choice

$$\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 30 \\2 & 28 \\3 & 26 \\4 & 24 \\5 & 22\end{array}$$
-If marginal cost were $22,how many units of output would this firm produce?

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Public Goods

Goods that are neither excludable nor rival in consumption, meaning anyone can use them, and one person's use does not diminish the ability of another to use it also.

Optimal Level

The most efficient, effective, or desirable point or state for a specific circumstance or variable.

Willingness to Pay

Willingness to pay represents the maximum amount an individual is prepared to spend to acquire a good or service.

Marginal Cost

The boost in total charges linked to the creation of one more unit of a product or service.