Use the figure below to answer the following questions.

Figure 17.2.1
-Refer to Figure 17.2.1. Curve MBA is Andrew's marginal benefit curve for a private good and curve MBB is Betty's marginal benefit curve for the same private good. If Andrew and Betty are the only two consumers in the economy, which point would be on the economy's marginal social benefit curve?
A)price of $20, quantity of 3 units
B)price of $20, quantity of 4 units
C)price of $10, quantity of 4 units
D)price of $30, quantity of 0 units
E)price of $60, quantity of 1 units

Question

Use the figure below to answer the following questions.
  
Figure 17.2.1
-Refer to Figure 17.2.1. Curve MBA is Andrew's marginal benefit curve for a private good and curve MBB is Betty's marginal benefit curve for the same private good. If Andrew and Betty are the only two consumers in the economy, which point would be on the economy's marginal social benefit curve?
A)price of $20, quantity of 3 units 
B)price of $20, quantity of 4 units 
C)price of $10, quantity of 4 units 
D)price of $30, quantity of 0 units 
E)price of $60, quantity of 1 units

Quizplus · Accepted Answer

The marginal social benefit curve is the horizontal sum of individual marginal benefit curves. At a price of $20, the quantity demanded by Andrew and Betty combined is 4 units, making it a point on the marginal social benefit curve.

Use the Figure Below to Answer the Following Questions