If the good in the table above is a private good,the total value of 10 units of output is __________,while if the good is a public good,the total value of 10 units is __________.

Question

Quizplus · Accepted Answer

If the good is a private good, the total value of 10 units is simply the sum of the individual values, which is $10+$20+$30+$40=$100. If the good is a public good, the total value is the sum of all individual values plus the added value of the 5th unit for each person, which is $10+$20+$30+$40+$40=$140, and this value is then multiplied by the number of people, which is 2, giving a total value of $280. Therefore, the answer is (A) $100;$280.

If the Good in the Table Above Is a Private