Title: The diagram below shows the marginal benefit of consuming, and marginal cost of providing, a public ...
Post by: viva902 on Oct 16, 2022
The diagram below shows the marginal benefit of consuming, and marginal cost of providing, a public good. This economy has 3 individuals, A, B and C. The diagram shows the MB for each individual and a summation of their marginal benefits.
FIGURE 16-4
Refer to Figure 16-4. Once some quantity of this public good is provided, the efficient price to charge for its use is
▸ P2.
▸ P1.
▸ P3.
▸ approximately zero.
▸ P4.
Title: The diagram below shows the marginal benefit of consuming, and marginal cost of providing, a public ...
Post by: billbye on Oct 16, 2022
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