For a public good, the marginal social benefit curve is the _______ summation of all the individual marginal benefit curves. For a private good, the marginal social benefit curve is the _______ summation of all the individual marginal benefit curves.
A) vertical; vertical
B) horizontal; horizontal
C) horizontal; vertical
D) vertical; horizontal

Question

Quizplus · Accepted Answer

For a public good, the marginal social benefit curve is the vertical summation of all the individual marginal benefit curves because each individual's benefit is fully realized regardless of how many others are consuming the good. For a private good, the marginal social benefit curve is the horizontal summation of all the individual marginal benefit curves, as the total benefit is the sum of the benefits to each consumer at each quantity level.

For a Public Good, the Marginal Social Benefit Curve Is