Pam and Kunal Are the Only Members of a Community

question 27

Multiple Choice

Pam and Kunal are the only members of a community that is trying to determine how much of the public good should be produced.Suppose that Pam is willing to pay $10 for the fourth unit of the public good,while Kunal is willing to pay $3 for it.What is the community's marginal willingness to pay for the fourth unit of the public good?

• A) $3
• B) $4
• C) $10
• D) $13