Mike, Joe, and Sam are roommates. They need lamps for their common living room. Lamps in their living room are a public good for these roommates.
The marginal benefit that each individual receives from varying numbers of lamps in the living room is given in the table above. If the marginal cost of a lamp is 13, what is the efficient number of lamps for the roommates to purchase? A) 2
B) 5
C) 0
D) 1
Question 2
The slope of a curved line can be approximated by
A) the average of the variable measured along the y-axis divided by the average of the variable measured along the x-axis.
B) the inverse of the straight-line method.
C) the average of the variable measured along the x-axis divided by the average of the variable measured along the y-axis.
D) the slope across an arc from one point on the curve to another point on the curve.
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