The marginal benefit of a public good is the
A) sum of the marginal benefits of all the individuals at each quantity.
B) marginal benefit of the individual person who places the lowest value on the good, multiplied by the number of people in the economy.
C) marginal benefit of the individual person who places the highest value on the good, multiplied by the number of people in the economy.
D) benefit of the last person's consumption.
E) average of the marginal benefits of all the individuals at each quantity.

Question

Quizplus · Accepted Answer

The marginal benefit of a public good is the sum of the marginal benefits of all the individuals at each quantity. This is because a public good is non-excludable, meaning that it is available to everyone regardless of whether or not they pay for it. Therefore, the marginal benefit for each individual is the same and can be added together to determine the total marginal benefit.

The Marginal Benefit of a Public Good Is the