4. A) If a club organizes to share the benefits of a good, they might do so to control the potential for congestion if the good was instead provided publicly. Let's assume the club has a total cost function TC(n) = FC + VC(n), where F0 are fixed costs and VC(n) are variable costs that are a function of membership, n. How can we explain the case where the club adds an additional member, and average costs rise. a . the additional member must Average fixed costs prior to have been very high. b. The marginal cost of an additional member is greater than the decrease in average fixed costs accomplished by increasing n. c. This is a definitive indication that club size, n, is too small. d. Average costs will always rise when new members are added. This is the fundamental problem of a club. B) Imagine a private research firm on the cusp of a new technology that will make electric vehicles more accessible to the masses. What is an economic reason for the federal government to subsidize the new tech? a The social marginal benefit of the . new technology is higher than the sum of private research costs and federal subsidy costs. b. The federal government must want to someday own the rights to the new tech. The social marginal benefit is lower than the private marginal benefit of new tech and thus would not development would not be completed otherwise. The social marginal cost is higher than the private marginal cost of development and thus the new tech would not be completed othenrvise. None of the above