Suppose the market consists of 3 individuals: Citizen A, Citizen B and Citizen C.
If the good shown on the graphs is a public good, then the marginal benefit of the 30^th unit is:

Question

Suppose the market consists of 3 individuals: Citizen A, Citizen B and Citizen C. If the good shown on the graphs is a public good, then the marginal benefit of the 30^th unit is:

Quizplus · Accepted Answer

For public goods, the marginal benefit to society is the sum of marginal benefits of all individuals. In this case, at 30 units of the public good, Citizen A's marginal benefit is $9, Citizen B's marginal benefit is $6, and Citizen C's marginal benefit is $3, making the total marginal benefit $18. Therefore, the marginal benefit to society of the 30th unit of the public good is $18.

Suppose the Market Consists of 3 Individuals: Citizen A, Citizen