Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $40 for the third unit of a public good; Kara is willing to pay $25. If the marginal cost of producing the third unit is $100, what is the minimum amount that Susie must be willing to pay for it to be efficient for government to produce the third unit?

A) $35
B) $100
C) $65
D) The amount cannot be determined with the information provided.

Marginal Cost

The cost incurred by producing one additional unit of a product, reflecting changes in variable costs.

Public Good

An offering of goods or services to the entire population of a society free of charge, provided by governmental bodies or private parties, without the aim of earning a profit.

Government

The system or group of people governing an organized community, often a state, and the institution through which societies are ruled and regulations are enforced.