For a private good,the economy's marginal social benefit curve is the ________ sum of the individual marginal benefit curves and for a public good,the economy's marginal social benefit curve is the ________ sum of the individual marginal benefit curves.

Question

Quizplus · Accepted Answer

For a private good, the marginal social benefit curve simply adds up the individual marginal benefit curves vertically, as the total benefit to society is simply the sum of the benefits received by individuals. However, for a public good, the individual marginal benefit curves are summed horizontally, as each additional unit of the good benefits all members of society equally. Therefore, the correct choice is C, where private goods have a vertical marginal social benefit curve and public goods have a horizontal marginal social benefit curve.

For a Private Good,the Economy's Marginal Social Benefit Curve Is