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) horizontal; vertical
B) vertical; horizontal
C) vertical; vertical
D) horizontal; horizontal

Question

Quizplus · Accepted Answer

For a public good, the marginal social benefit is the vertical summation of individual benefits because everyone can consume the good simultaneously. For a private good, it is the horizontal summation because the good is consumed individually, and quantities are added.

For a Public Good, the Marginal Social Benefit Curve Is