In the case of a public good, a demand curve that shows the marginal benefit of the good is:
A) nonexistent.
B) the horizontal sum of individual demand curves.
C) the vertical sum of individual demand curves.
D) perfectly inelastic.

Question

Quizplus · Accepted Answer

For public goods, the demand curve is the vertical sum of individual demand curves because each individual's valuation of the good is added together at each quantity level, reflecting the non-rivalrous and non-excludable nature of public goods.

In the Case of a Public Good, a Demand Curve