What is one difference between the demand for a private good and that for a public good?
A) With a private good, each consumer chooses the quantity she wants to consume but with a public good, each consumer chooses the price she is willing to pay for a fixed quantity.
B) With a private good, each consumer chooses the quantity she wants to consume but with a public good, everyone consumes the same quantity.
C) With a private good, each consumer receives different amounts of benefit from consuming the product but with a public good, every consumer realises the same amount of benefit from consuming the product.
D) The marginal benefit from consuming the last unit of a public good always exceeds the marginal benefit from consuming the last unit of a private good because there are externalities in the consumption of the former.
Correct Answer:
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Q16: Figure 14.1 Q17: The construction of a market demand curve Q19: Figure 14.1 Q22: An example, from the list below, of Q23: Public goods are distinguished by two primary Q24: What does the supply curve of a Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
