Suppose that the government is providing a public good to two people, Lesedi and Sunil. To Lesedi, the marginal benefit of the public good is MB = 1,374 – 142Q. Sunil’s marginal benefit is MB = 2,287 – 153Q. The marginal cost of providing the public good is constant and is equal to $1,596. What is the efficient quantity of the public good?

  • A. 4
  • B. 7
  • C. 10
  • D. 13

Public Answer

JDXVPI The First Answerer