Author Question: There are four lighthouses on the island of Sand. If this is the efficient quantity of lighthouses, ... (Read 17 times)

melina_rosy · **on:** Jun 29, 2018

There are four lighthouses on the island of Sand. If this is the efficient quantity of lighthouses, ________.

A) the marginal social benefit of the fourth lighthouse equals its marginal social cost
B) total social benefit is zero
C) marginal social benefit minus marginal social cost is a maximum
D) Both answers A and C are correct.

Question 2

Lizzie's budget line is shown in the figure above. If Lizzie's income is 20, which of the following formulas represents her budget equation?

A) QC = 20 + QM
B) QC = 20 - QM
C) QC = -20 + 2 QM
D) QC = 20 - 2QM