The Following Information Is for a Public Good

question 93

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.Suppose the government has already produced 4 units of this public good.The amount individual B is willing to voluntarily pay for the 4^th unit is:

• A) $14
• B) $5
• C) $2
• D) $0

---

Definitions:

Inputs

The resources, materials, or information that are required to produce goods or services in a business or manufacturing process.

Break-Even Point

The point at which total cost and total revenue are equal, meaning there is no net loss or gain, and the business starts to generate profit beyond this point.

Net Margin

A financial metric that measures the percentage of net income to revenue, indicating the profitability of a company after all expenses.

ISO Certification

A seal of approval from a third party body that a company runs to one of the international standards developed and published by the International Organization for Standardization.