The Economy's Marginal Benefit Curve for a Public Good Is

question 20

Multiple Choice

The economy's marginal benefit curve for a public good is found by ________ for all individuals.

• A) vertically summing the marginal benefit curves
• B) vertically summing the total benefit curves
• C) horizontally summing the total benefit curves
• D) horizontally summing the marginal benefit curves

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Definitions:

Linear Demand Curve

A graph showing a straight-line relationship between the price of a good and the quantity demanded.

Demand

The quantity of a good or service that consumers are willing and able to purchase at different prices.

Total Revenue

The total amount of money a firm receives from sales of its products or services, calculated by multiplying the price per unit by the total number of units sold.

Price-inelastic

Price-inelastic describes a situation where the demand for a product or service is relatively unresponsive to changes in its price.