Use the figure below to answer the following questions. Figure 16.2.1 -Refer to Figure 16.2.1.Curve MB_A is Andrew's marginal benefit curve for a private good and curve MB_B is Betty's marginal benefit curve for the same private good.If Andrew and Betty are the only two consumers in the economy,which point would be on the economy's marginal social benefit curve? A)price of $20,quantity of 3 units B)price of $20,quantity of 4 units C)price of $10,quantity of 4 units D)price of $30,quantity of 0 units E)price of $60,quantity of 1 units

Question

Quizplus · Accepted Answer

For a private good, the marginal social benefit curve is found by horizontally summing the individual marginal benefit curves of all consumers. At a price of $20, both Andrew and Betty would be willing to purchase a total of 4 units combined, making option B correct.

Use the Figure Below to Answer the Following Questions