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 public good and curve MB_B is Betty's marginal benefit curve for the same public 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 public good and curve MB_B is Betty's marginal benefit curve for the same public 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 marginal social benefit curve is the vertical sum of individual marginal benefit curves. At a quantity of 1, the price of $60 reflects the combined willingness to pay of both Andrew and Betty.

Use the Figure Below to Answer the Following Questions