This Table Shows the Marginal Benefits from Widgets Obtained by the Only

This table shows the marginal benefits from widgets obtained by the only three people who value them. $$\begin{array} { r } { \text { Marginal Value to } } \quad\quad\\\begin{array} { | c | c | c | c | } \hline \text { Number of widgets }& \text { Helen } & \text { Ingrid } & \text { Jane } \\\hline 1 \mathrm { st } & \$ 10 & \$ 8 & \$ 6 \\\hline \text { 2nd } & \$ 4 & \$ 3 & \$ 2 \\\hline \text { 3rd } & \$ 2 & \$ 1 & \$ 1 \\\hline\end{array}\end{array}$$ Suppose widgets cost $8.50 to produce. If widgets are a public good, how many will be produced by market incentives, and is that the right (efficient) number?

A) Zero will be produced, and this is below the socially optimal amount.
B) One will be produced, and this is the socially optimal amount.
C) One will be produced, and this is below the socially optimal amount.
D) Two will be produced, and this is the socially optimal amount.

Correct Answer:

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