Suppose that Mick and Cher are the only two members of society and are willing to pay $10 and $8, respectively, for the third unit of a public good. Also, assume that the marginal cost of the third unit is $17. We can conclude that a) zero units should be produced. b) the third unit should be produced. c) the third unit should not be produced. d) 4 units should be produced.

b) The third unit should be produced

Explanation:

Consumer surplus arises wherein the price consumer actually pays is lesser than the price consumer was willing to pay.

Marginal cost refers to the additional cost incurred when an extra unit is produced.

Marginal revenue refers to the addition to total revenue when an additional unit of a good is produced.

As per marginal analysis, a producer would continue producing till the point wherein the marginal cost of production is equal to the marginal revenue derived.

In the given case, the two members are willing to pay $10 and $8 for the third unit of public good. The marginal cost for third unit being $17. While the marginal revenue derived being $18 ($10 + $8)

Since, the marginal revenue derived would be greater than marginal cost, the third unit should be produced.

support your answer using the data presented. (5 points). 4. based on the information you used to schedule and curve, which product would you recommend the shoe hut focus on, and why? provide details that support your answer. (5 points).

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.