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Answer the question based on the following information for a public good. P a and P b are the prices that individuals A and B

Answer the question based on the following information for a public good.PaandPbare the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society.

QPaPb1$ 3$ 5224313402501

If the marginal cost of producing this good at the optimal quantity is $8, the optimal quantity must be

Multiple Choice

  • 5 units.
  • 1 unit.
  • 3 units.
  • 4 units.
  • 2 units.

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