Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 16 - Public Finance: Expenditures and Taxes - Questions - Page 355: 2

Answer

Optimal quantity = 4. It is optimal because at 4 units the collective willingness to pay for the final unit of the good (= 10) matches the marginal cost of production (= 10)

Work Step by Step

Conceptual Question. No Work Needed.
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