The Reason Why We Sum the Demand Curves of Individual

question 42

Multiple Choice

The reason why we sum the demand curves of individual consumers vertically rather than horizontally in a public goods market is that:

• A)the willingness to pay in a public good market is smaller than that in a standard market.
• B)individual consumers are unlikely to be willing to pay enough to cover the marginal cost of production of a public good.
• C)the marginal social benefit of the Xth unit includes all consumers' marginal social benefits because the public good is non-exclusive and non-rival.
• D)the concept of quantities is meaningless in the case of public goods.

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Definitions:

Nonpolar

Describing molecules that do not have distinct positive and negative poles, resulting in a lack of electronegativity difference between the atoms.

Single Covalent

A type of chemical bond where two atoms share one pair of valence electrons.

Neutrons

Subatomic particles found within the nucleus of an atom, having no electric charge and a mass slightly larger than that of protons.

Atomic Number

The number of protons in the nucleus of an atom, which determines the chemical properties of an element and its place in the periodic table.