Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $40 for the third unit of a public good; Kara is willing to pay $25. If the marginal cost of producing the third unit is $95, what is the minimum amount that Susie must be willing to pay for it to be efficient for government to produce the third unit? Multiple Choice $65 $30 $125 $95 The amount cannot be determined with the Information provided. O O

Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $40 for the third unit of a public good; Kara is willing to pay $25. If the marginal cost of producing the third unit is $95, what is the minimum amount that Susie must be willing to pay for it to be efficient for government to produce the third unit? Multiple Choice $65 $30 $125 $95 The amount cannot be determined with the Information provided. O O

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter19: Externalities And Public Goods

Section: Chapter Questions

Problem 19.6P

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