Because private firms cannot make money pricing at marginal cost for collective consumption goods, government must produce collective consumption goods for them to exist

Which of the following purchases is most likely to rise as the result of a temporary tax cut, according to the permanent-income hypothesis?

A) television sets and other consumer durables B) steak dinners and other consumer non-durables C) trips to the Virgin Islands and other vacation destinations D) theater tickets and other entertainment expenditures

What is the marginal revenue of producing the fourth unit?

a. 90 b. 40 c. 20 d. 180