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:

Private Sphere

Refers to the realm of individual life, family, and intimacy, as opposed to the public sphere which involves collective society and state mechanisms.

Chivalry Hypothesis

The theory suggesting that women are treated more leniently than men by the criminal justice system, based on traditional gender norms.

Leniently

Showing tolerance or gentleness in judgment or punishment; inclined to be less strict.

Canadian Law

The legal framework that governs Canada, comprising the constitution, statutes, regulations, and common law derived from judicial decisions.