Suppose the market consists of 3 individuals: Citizen A, Citizen B and Citizen C. 
If the good shown on the graphs is a public good, and the marginal cost of providing each unit is constant and equal to $5, then what is the optimal quantity of the public good?
A. 50 units
B. 30 units
C. 20 units
D. 40 units
Answer: D
You might also like to view...
In the above figure, if no government intervention occurs, at the unregulated competitive market equilibrium, the marginal cost of the externality is ________ per unit
A) $3 B) $4 C) $6 D) $7
If the actual capital-labor ratio is above the steady-state capital labor ratio, growth from convergence will be ________, and the economy will grow ________ than it will along a balanced growth path
A) negative; slower B) negative; faster C) positive; slower D) positive; faster
The additional output a firm gets from hiring an additional unit of labor is the
A. average product of labor. B. total product of labor. C. value of the marginal product of labor. D. marginal product of labor.
What are the three goals of the Employment Act of 1946?
A) keep the peace, improve public education, and protect the environment B) improve the education system, provide more job training, and expand the number of government jobs C) full employment, price stability, and economic growth D) full employment, better schools, and lower income taxes