Refer to the above supply and demand graph for a public good. Point c on the graph shows where the:
A. average benefit equals the average cost of the public good.
B. total benefit equals the total cost of the public good.
C. total benefit equals the marginal cost of the public good.
D. marginal benefit equals the marginal cost of the public good.
Answer: D
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Indicate whether the statement is true or false
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The number of seats available in an arena is fixed at 20,000. The equilibrium price for a ticket to a basketball game at the arena is $80. The equilibrium price for a ticket to a hockey game at the arena is $95. Which of the following is true?
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