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Use the following information (Prompt 1) to answer the remainder of the questions on the exam. There are two consumers of a public good. The
Use the following information (Prompt 1) to answer the remainder of the questions on the exam. There are two consumers of a public good. The demands for the consumers are as follows: Consumer A: P =50 - Q Consumer B: Pg = 150 - 2Q Before answering any of the questions, | suggest you draw the appropriate graph and determine the social demand curve. Question 6 2 pts k Refer to Prompt 1. If the marginal cost is equal to $125, what is the socially optimal number of units that will be produced? Question 7 2 pts Refer to Prompt 1. If the marginal cost is equal to $20, what is the socially optimal number of units that will be produced? Question 8 2 pts Refer to Prompt 1. k You were asked about two scenarios in the previous two questions. One where marginal cost equals $20 and another where marginal cost equals $125. In which of these two scenarios would you expect deadweight loss to occur because of this being a public good? O Neither scenario (O Both scenarios (O When marginal cost equals $20 (O When marginal cost equals $125 [ | Question 9 2 pts Refer to Prompt 1. Which consumer is the free rider in this example? (O Consumer A (O Consumer B (O Both consumers (O Neither consumer
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