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The marginal benefit of a public good is the sum of the marginal benefits of all

ID: 1156441 • Letter: T

Question

The marginal benefit of a public good is the

sum of the marginal benefits of all the individuals at each quantity.

marginal benefit of the individual person who places the lowest value on the good, multiplied by the number of people in the economy.

marginal benefit of the individual person who places the highest value on the good, multiplied by the number of people in the economy.

benefit of the last person's consumption.

average of the marginal benefits of all the individuals at each quantity.

sum of the marginal benefits of all the individuals at each quantity.

marginal benefit of the individual person who places the lowest value on the good, multiplied by the number of people in the economy.

marginal benefit of the individual person who places the highest value on the good, multiplied by the number of people in the economy.

benefit of the last person's consumption.

average of the marginal benefits of all the individuals at each quantity.

Explanation / Answer

Ans is A

Marginal Benefit of all the public is the sum of marginal benefit accruing to each individual for each quantiyy.

And optimal level of output is When MC=sum of all individual marginal benegit.