Top Posters
Since Sunday
5
o
5
4
m
4
b
4
x
4
a
4
l
4
t
4
S
4
m
3
s
3
New Topic  
Hareplity Hareplity
wrote...
Posts: 113
Rep: 0 0
A year ago

The diagram below shows the marginal benefit of consuming, and marginal cost of providing, a public good. This economy has 3 individuals, A, B and C. The diagram shows the MB for each individual and a summation of their marginal benefits.

Short description: A graph plots quantity against marginal benefit, marginal cost. Long description: The horizontal axis representing quantity ranges from Q subscript 1 to Q subscript 4. The vertical axis represents a marginal benefit, marginal cost ranges from P subscript 1 to P subscript 4. The graph plots four lines. A line representing MC passes through the following points: (Q subscript 1, P subscript 1), (Q subscript 2, P subscript 2), (Q subscript 3, P subscript 3), and (Q subscript 4, P subscript 4). Three parallel lines, MB subscript A, MB subscript B, and MB subscript C intersect the line, MC at points, (Q subscript 1, P subscript 1), (Q subscript 2, P subscript 2), and (Q subscript 3, P subscript 3). The line representing M B subscript A B C intersects the line, MC at point (Q subscript 4, P subscript 4).

FIGURE 16-4

Refer to Figure 16-4. The curve MBABC is derived by



▸ determining the private marginal cost of the public good.

▸ observation of the consumption of public goods at the optimal price.

▸ observation of the consumption of public goods at a price of zero.

▸ a vertical summation of the marginal benefits of all individuals at each level of output.

▸ a horizontal summation of the marginal benefits of all individuals at each given price level.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 59 times
1 Reply
Replies
Answer verified by a subject expert
szsz
wrote...
Posts: 129
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Hareplity Author
wrote...

A year ago
Just got PERFECT on my quiz
wrote...

Yesterday
This helped my grade so much Perfect
wrote...

2 hours ago
You make an excellent tutor!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  982 People Browsing
Related Images
  
 707
  
 822
  
 286
Your Opinion
Where do you get your textbooks?
Votes: 284

Previous poll results: Who's your favorite biologist?