The supply curve of a public goods 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 cost of producing each unit of the good.

Question

Quizplus · Accepted Answer

The supply curve of a public good shows the marginal cost of producing each unit of the good, as the cost of producing additional units of a public good does not change with the quantity produced. Therefore, D is the correct answer. A is incorrect because the supply curve only reflects the quantities that suppliers are willing to provide at a given price, not the total quantities of all producers. B is incorrect because it describes the total cost curve, not the supply curve. C is incorrect because it only shows the total cost, not the marginal cost.

The Supply Curve of a Public Goods Shows