Consider an economy with two consumers, each with a marginal benefit for a public good of MB = 20 - 1/2q.What is society's marginal benefit (MB_T) for the public good? A)MB_T = 10 - q B)MB_T =40- 2q C)MB_T =40 - q D)MB_T =20 - 1/2q E)None of the above.

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Quizplus · Accepted Answer

The society's marginal benefit for a public good is the sum of the individual marginal benefits. Since each consumer has a marginal benefit of MB = 20 - 1/2q, for two consumers, the total marginal benefit is MBS = (20 - 1/2q) + (20 - 1/2q) = 40 - q.

Consider an Economy with Two Consumers, Each with a Marginal