The Following Information Is for a Public Good

question 104

Multiple Choice

The following information is 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.
Refer to the data below.If the marginal cost of 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:

Regression Coefficients

Quantitative measures in statistical models representing the change in the dependent variable for a one-unit change in an independent variable, assuming all other variables are held constant.

F-test

A group of statistical tests that compare the variances among different sample groups to ascertain if they come from populations with equal variances.

Independent Variables

The variables that are manipulated or categorised to determine their effect on the dependent variable in an experiment.

Observations

Data collected during an experiment or research that are analyzed to draw conclusions.