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)
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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
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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

 

 

 

 

 

 

  1. 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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