The following table shows the marginal benefits of a pure public good that can be enjoyed by four people in a community, Athirah, Dewi, Chin, and John. Number of Public Good Marginal Benefit: 1 2 3 4 Athirah 175 150 125 100 Dewi 150 125 100 75 Chin 125 100 75 50 John 100 75 50 25 What is the efficient number of the public good if the marginal social cost of making the public good available is RM575? Explain your answer.
The following table shows the marginal benefits of a pure public good that can be enjoyed by four people in a community, Athirah, Dewi, Chin, and John. Number of Public Good Marginal Benefit: 1 2 3 4 Athirah 175 150 125 100 Dewi 150 125 100 75 Chin 125 100 75 50 John 100 75 50 25 What is the efficient number of the public good if the marginal social cost of making the public good available is RM575? Explain your answer.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
Section: Chapter Questions
Problem 4CQ
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Q3. The following table shows the marginal benefits of a pure public good that can be enjoyed by four people in a community, Athirah, Dewi, Chin, and John.
|
|
Number of Public Good |
||
Marginal Benefit: |
1 |
2 |
3 |
4 |
Athirah |
175 |
150 |
125 |
100 |
Dewi |
150 |
125 |
100 |
75 |
Chin |
125 |
100 |
75 |
50 |
John |
100 |
75 |
50 |
25 |
|
|
|
|
|
- What is the efficient number of the public good if the marginal
social cost of making the public good available is RM575? Explain your answer.
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