Consider the provision of a playground. The marginal benefit for consumer 1 is given by MB = 30 – 2qand the marginal benefit for consumer 2 is given by MB = 20 – ½ q. If the marginal cost of provision is $5per unit, what is the socially optimal level of the playground? *a. 30 units b.18 units c.0 units d.10 units e.None of the other answers is correct.

Consider the provision of a playground. The marginal benefit for consumer 1 is given by MB = 30 – 2qand the marginal benefit for consumer 2 is given by MB = 20 – ½ q. If the marginal cost of provision is $5per unit, what is the socially optimal level of the playground? *a. 30 units b.18 units c.0 units d.10 units e.None of the other answers is correct.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 2CQQ

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