To find the economy's marginal benefit curve of a public good,we
A) sum the marginal benefits of each individual at each quantity.
B) sum the costs of the inputs used to produce the good.
C) sum the quantities demanded at each individual price.
D) sum the prices consumers are willing to pay for different quantities of the good.
E) average the prices consumers are willing to pay for the same quantity of the good.

Question

Quizplus · Accepted Answer

The marginal benefit curve of a public good is found by summing up the marginal benefits that each individual receives from each unit of the good. This is because public goods are non-excludable and non-rivalrous, meaning that one person's consumption does not reduce the amount available for others, and it's not possible to exclude others from using the good. Therefore, the total benefit to society is the sum of the individual benefits.

To Find the Economy's Marginal Benefit Curve of a Public