The marginal cost of producing 25 units of a public good is $100. There are two individuals in the society. Person A is willing to pay $40 for 25 units of the public good. If 25 units of the public good are provided, then Person B must be willing to pay
A. $0.
B. $40.
C. $60.
D. $75.
Answer: C
Economics
You might also like to view...
In 2014, output per capita in the United States was approximately equal to
A) $15,500. B) $25,800. C) $43,800. D) $54,592.
Economics
When a consumer has chosen an optimal bundle of goods, this bundle maximizes marginal utility.
Answer the following statement true (T) or false (F)
Economics