Refer to the diagrams, in which figures (a) and (b) show demand curves reflecting the prices Alvin and Elmer are willing to pay for a public good, rather than do without it. If the marginal cost of the optimal quantity of this public good is $10, the optimal quantity must be
What will be an ideal response?
3 units.
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The more certain private property rights are
A) the less people need to invest in education or human capital development. B) the more an economy must grow to maintain a certain living standard. C) the less entrepreneurship there will be. D) the more capital accumulation there will be.
The inflation rate is measured as the percentage change in a price index
a. True b. False Indicate whether the statement is true or false
An increase in demand will cause
a. an increase in supply. b. a decrease in quantity supplied. c. a decrease in supply. d. a decrease in equilibrium price. e. an increase in quantity supplied.
One of the conclusions from Akerlof's paper titled "The Market for Lemons" was:
A. high quality goods will drive low quality goods out of the market. B. lacking the ability to distinguish high from low quality, the quality the market will end up offering will be the average quality. C. high quality is always demanded by consumers over low quality. D. lacking the ability to distinguish high from low quality, low quality may drive high quality out of the market.