Suppose Dexter and Amy Are the Only Members of a Community

question 20

Multiple Choice

Suppose Dexter and Amy are the only members of a community that is trying to determine how much of the public good should be produced.Dexter's (inverse) demand curve is given by P = 50 - 5Q,while Amy's (inverse) demand curve is given by P = 150 - 15Q,where P is price or marginal benefit and Q is the quantity of the good.The marginal cost of producing the public good is constant at $80.Setting aggregate marginal benefit equal to marginal cost leads to the conclusion that the efficient quantity of the public good is equal to:

• A)2
• B)6
• C)10
• D)80.

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Definitions:

Immune Response

The body's defense mechanism against foreign substances or pathogens, involving recognition, response, and memory components of the immune system.

Medication

Substances used to treat or prevent diseases and conditions.

Ambi-

A prefix meaning both, indicating inclusivity or both sides, used in various scientific and medical terminologies.

Ana-

a prefix denoting upward, back, again, excessive, or apart.