The market demand curve for a public good is found by
A)Horizontally summing the individual demand curves
B)Vertically summing the individual demand curves
C)Horizontally summing the firm's demand curves
D)Vertically summing the firm's demand curves

Question

Quizplus · Accepted Answer

The market demand curve for a public good is found by vertically summing the individual demand curves because public goods are non-excludable and non-rivalrous, meaning each individual's valuation of the good is added together at each quantity level.

The Market Demand Curve for a Public Good Is Found