Use the figure below to answer the following questions.
Figure 17.2.1
-Refer to Figure 17.2.1.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?

Question

Use the figure below to answer the following questions.

Figure 17.2.1
-Refer to Figure 17.2.1.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?

Quizplus · Accepted Answer

The economy's marginal social benefit curve is the horizontal sum of individual marginal benefit curves. At a price of $20, if Andrew's and Betty's combined quantity demanded is 4 units, this point would be on the marginal social benefit curve.

Use the Figure Below to Answer the Following Questions