Question

The marginal benefit of a public good is the A. benefit of the last​ person's consumption....

The marginal benefit of a public good is the

A. benefit of the last​ person's consumption.

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

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

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

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

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The answer is (e) as the marginal benefit of a pubic good is the sum of total private marginal benefits for all the individuals at each quantity. Different individuals get different additional utility from increasing the quantity and these should be added to get the total marginal benefit.

All other options are incorrect as they do not give the correct formula for calculating the marginal benefit of a public good.

Add a comment
Know the answer?
Add Answer to:
The marginal benefit of a public good is the A. benefit of the last​ person's consumption....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Denote hi as the marginal benefit of individual i at the optimal quantity of a public...

    Denote hi as the marginal benefit of individual i at the optimal quantity of a public good. How much will individual i pay if there are N people and a Lindahl taxation scheme is used?

  • Suppose the government is producing a public good. If the marginal benefit of the last unit...

    Suppose the government is producing a public good. If the marginal benefit of the last unit of a public good produced is greater than the marginal cost of that​ unit, to achieve the efficient amount of​ production, what should be​ done? A. The government should produce more units. B. The government should cease production. C. Private firms should take over the production and sale of the good. D. Nothing because the government is already producing the efficient quantity of the...

  • QUESTION 22 Economic Efficiency can be attained when a. marginal cost is zero b.marginal benefit equals...

    QUESTION 22 Economic Efficiency can be attained when a. marginal cost is zero b.marginal benefit equals marginal cost c. marginal benefit is greater than marginal cost d. marginal benefit is less than marginal cost QUESTION 23 Efficient markets are considered rationing devices because a. consumers value the good or service the most will be the one who get it b. of government decree c. the equality of the market allows for all to benefit d. suppliers can produce the good...

  • 1. A pure public good is: a. one that can easily be sold by the unit....

    1. A pure public good is: a. one that can easily be sold by the unit. b. one that is nonrival in consumption. c. one whose benefits are not subject to exclusion. d. both (b) and (c) 2. The marginal cost of providing a certain quantity of a pure public good to an additional consumer after it is provided to any one consumer is: a. zero. b. positive and increasing. c. positive and decreasing. d. positive and constant. 3. The...

  • 1)When consumption of a good is nonrival and​ nonexcludable, the good is a A. mixed good....

    1)When consumption of a good is nonrival and​ nonexcludable, the good is a A. mixed good. B. private good. C. service. D. public good. 2)An externality can be a A.benefit but not a cost. B.cost but not a benefit. C.cost or a benefit. D.marginal cost but not a total cost 3) An externality occurs when A.the marginal social cost of an activity increases as that activity is increased. B.some of the costs of producing a good are paid by someone...

  • Write down the social marginal value MVS (as a function of quantity) for a public good...

    Write down the social marginal value MVS (as a function of quantity) for a public good if there 50 people, every one of them having the same individual demand P = 250 – 0.5q, where P is the price ($ per unit) and q is the individual quantity demanded (units)

  • 5. In a Lindahl equilibrium, a. each consumer purchases a pure public good up to the...

    5. In a Lindahl equilibrium, a. each consumer purchases a pure public good up to the point at which his or her marginal benefit equals the marginal social cost of the good. b. each person pays a tax per unit of the pure public good equal to his or her marginal benefit. c. the sum of the marginal benefits of all consumers equals the marginal social cost of the good. d. both (a) and (c) e. both (b) and (c)...

  • 1. Consider an economy with two consumers, Ben and Joe. There is public good in this...

    1. Consider an economy with two consumers, Ben and Joe. There is public good in this economy in a form of tornado sirens. Ben’s demand for tornado sirens is given by P = 10 − Q, and Joe’s demand for tornado sirens is P = 8 − 2Q. Marginal cost for providing tornado sirens in the markets is constant, MC = 9. (a) Are tornado sirens a public good? Explain your answer. (b) On the graph below, draw the marginal...

  • Public Goods EBE2053/EXERCISE 5 1. A pure public good is: a. one that can easily be...

    Public Goods EBE2053/EXERCISE 5 1. A pure public good is: a. one that can easily be sold by the unit. b. one that is nonrival in consumption. c. one whose benefits are not subject to exclusion. d. both (b) and (c) 2. The marginal cost of providing a certain quantity of a pure public good to an additional consumer after it is provided to any one consumer is: a. zero. b. positive and increasing. c. positive and decreasing. d. positive...

  • Problem #-Samuelson Public Good      Econ 330- YJY 1.. Consider a community consisting of three voters, Al,...

    Problem #-Samuelson Public Good      Econ 330- YJY 1.. Consider a community consisting of three voters, Al, Bob and Cathy. The Marginal Benefit function for each person is, for lighthouse service G is; MBa = 40 – 4G for Al, MBb = 20 – 2G for Bob, and MBc = 10 – G for Cathy. (Interpret this as demand function.) The marginal cost of producing the government service is MC= 24. (i).. Draw a diagram to show the marginal benefit functions...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT