The supply curve of a public good shows
A)the total quantities that all producers are willing and able to supply at each price.
B)the maximum amount suppliers require to produce each quantity of the good.
C)the total cost of producing each unit of the good.
D)the marginal social cost of producing each unit of the good.

Question

Quizplus · Accepted Answer

The supply curve of a public good shows the marginal social cost of producing each unit of the good, as all suppliers would have to incur this cost to produce the good. The supply curve does not show the total quantities that all producers are willing and able to supply at each price (A), the maximum amount suppliers require to produce each quantity of the good (B), or the total cost of producing each unit of the good (C).

The Supply Curve of a Public Good Shows