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Is C the correct answer? ilures OnQ Taniya Zeng: Attempt 1 - duverse selectun. Question 2 (1 point) Saved The diagram below shows the marginal

Is C the correct answer?

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ilures OnQ Taniya Zeng: Attempt 1 - duverse selectun. Question 2 (1 point) Saved The diagram below shows the marginal benefit and marginal cost of 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. P4 Marginal Benefit, Marginal Cost Quantity FIGURE 16-4es OnQ Taniya Zeng: Attempt 1 Q1 Q2 23 Q4 Quantity FIGURE 16-4 Refer to Figure 16-4. Suppose the government provides Q4 units of the public good. If the government was able to require consumers to pay a price of P4, then (A) consumers would not use the public good at all, and this would be socially optimal. (B) the appropriate price would be achieved, although not enough would be consumed. c) consumers would use too little of the public good, and this would be inefficient for society. ( D) the market would clear, although not enough would be produced. OE) the inefficient quantity would be being produced. Question 3 (1 point) Saved Consider a product (say, tulip bulbs) that generates positive externalities when it is consumed (other people enjoy looking at them), In this case

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