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viva902 viva902
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A year ago

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.

Short description: A graph plots quantity against marginal benefit, marginal cost. Long description: The horizontal axis representing quantity ranges from Q subscript 1 to Q subscript 4. The vertical axis represents a marginal benefit, marginal cost ranges from P subscript 1 to P subscript 4. The graph plots four lines. A line representing MC passes through the following points: (Q subscript 1, P subscript 1), (Q subscript 2, P subscript 2), (Q subscript 3, P subscript 3), and (Q subscript 4, P subscript 4). Three parallel lines, MB subscript A, MB subscript B, and MB subscript C intersect the line, MC at points, (Q subscript 1, P subscript 1), (Q subscript 2, P subscript 2), and (Q subscript 3, P subscript 3). The line representing M B subscript A B C intersects the line, MC at point (Q subscript 4, P subscript 4).

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.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
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billbyebillbye
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viva902 Author
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A year ago
This helped my grade so much Perfect
avance37
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Thanks for your help!!
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