Once a Public Good Is Produced, Everyone

question 226

Multiple Choice

Once a public good is produced, everyone

• A) can consume a different amount depending on their willingness to buy the good.
• B) consumes the same amount and everyone's willingness to pay is the same.
• C) consumes the same amount, but the willingness to pay will be different for different individuals.
• D) can consume a different amount and pay different prices for the product.

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Definitions:

Marginal Benefit

The additional satisfaction or utility derived by consuming or producing one more unit of a good or service.

Public Good

An item or service made available at no cost to everyone in society, delivered by public institutions, private organizations, or individuals without aiming for financial gain.

Marginal Cost

The cost of producing one additional unit of a good or service, a concept crucial for understanding economic decision-making and pricing strategies.

Positive Externalities

Benefits that result from a commercial activity experienced by others who are not directly involved in the transaction or activity.