Answer the question based on the following information for a public good. Pa and Pb are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. Q 1 2 3 4 5 Pa $3 2 1 0 0 Pb $5 4 3 2 1 If the marginal cost of producing this good at the optimal quantity is $4, the optimal quantity must be

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Answer the question based on the following information for a public good. Pa and Phare the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are
the only two members of society.
Q
1
2
3
4
5
Pa
$3
2
1
0
0
Multiple Choice
If the marginal cost of producing this good at the optimal quantity is $4, the optimal quantity must be
1 unit.
2 units.
3 units.
Pb
$5
4
3
2
1
4 units.
Transcribed Image Text:Answer the question based on the following information for a public good. Pa and Phare the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. Q 1 2 3 4 5 Pa $3 2 1 0 0 Multiple Choice If the marginal cost of producing this good at the optimal quantity is $4, the optimal quantity must be 1 unit. 2 units. 3 units. Pb $5 4 3 2 1 4 units.
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