Ashton has the utility of wealth curve shown in the above figure. He owns a sports car worth $30,000, and that is his only wealth. Ashton is a careless driver and there is a 30 percent chance that he will have an accident within a year

Public provision

A) is the production of a good by the government by giving funds to private producers. B) lowers the marginal cost of producing the good. C) means the good is produced by a public authority that receives the most of its revenue from the government. D) Both answers A and B are correct. E) Both answers B and C are correct.

According to the figure above, the opportunity cost of producing another computer is

A) higher at A. B) higher at B. C) the same at every point along the frontier. D) different at most points along the frontier but equal at points A and B because they are equally distant from the axes.