Asked by Taylor Eakin on Jul 24, 2024
Verified
Assume there are two people in a society. Person A is willing to pay $70 to have one unit of a public good produced and Person B is willing to pay $80 to have one unit of a public good produced and $70 to have two units produced. As a result, for ________ unit(s) of this public good, society would be willing to pay a price of ________.
A) 1; $150
B) 3; $100
C) 1; $100
D) 5; $80
Public Good
A good that is non-excludable and non-rivalrous, meaning it can be consumed by many people without depleting and without preventing others from consuming it.
- Identify the characteristics of public goods and the problems associated with their provision.
Verified Answer
KS
Keisha SandlinJul 27, 2024
Final Answer :
A
Explanation :
For one unit of the public good, Person A is willing to pay $70 and Person B is willing to pay $80, totaling $150.
Learning Objectives
- Identify the characteristics of public goods and the problems associated with their provision.