Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $40 for the third unit of a public good; Kara is willing to pay $25. If the marginal cost of producing the third...


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Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $40 for the third unit of a public good; Kara is willing to pay $25. If the marginal cost of producing the third unit is $80, what is the<br>minimum amount that Susie must be willing to pay for it to be efficient for government to produce the third unit?<br>Multiple Choice<br>$95<br>$80<br>$15<br>$65<br>The amount cannot be determined with the information provided.<br>

Extracted text: Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $40 for the third unit of a public good; Kara is willing to pay $25. If the marginal cost of producing the third unit is $80, what is the minimum amount that Susie must be willing to pay for it to be efficient for government to produce the third unit? Multiple Choice $95 $80 $15 $65 The amount cannot be determined with the information provided.

Jun 07, 2022
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