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s344n2d4d5 [400]
3 years ago
8

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 $100, what is the minimum amount that Susie must be willing to pay for it to be efficient for government to produce the third unit?
a) $35
b) $100
c) $65
d) The amount cannot be determined with the information provided.
Mathematics
1 answer:
Lorico [155]3 years ago
4 0

Answer:

Susie must be willing to pay $35 for it to be efficient for government to produce the third unit

Step-by-step explanation:

We have given marginal cost MC = $100

For government it is efficient to provide public good when Marginal benefit from good = MC of good.

MC = $ 100 so MB from all people must be equal to 100

MB = 40 + 25 + x

MC = MB

100 = 40 + 25 + x

x = 35

So Susie must be willing to pay $35 for it to be efficient for government to produce the third unit

So option (a) is correct answer

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Answer:

(x - 5)(x + 3)

Step-by-step explanation:

to solve x² - 2x = 15, we need to get all the terms on one side so we can solve the quadratic equation using factoring. to do this, we subtract 15 from both sides

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we can use 3 and -5 as factors and test it out. we put x in front because we have an x²

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FOIL stands for: First, Outside, Inside, and Last terms

F: (x - 5)(x + 3) = x²

O: (x - 5)(x + 3) = -3x

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x² - 2x - 15

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