If We Know Everyone's Individual Marginal Benefit Curve for a Public

question 133

Multiple Choice

If we know everyone's individual marginal benefit curve for a public good,then the economy's marginal benefit curve for that public good can be found by

• A) finding the average of everyone's marginal benefit.
• B) summing horizontally the amount of everyone's marginal benefit.
• C) summing vertically the amount of everyone's marginal benefit.
• D) averaging either horizontally or vertically the amount of everyone's marginal benefit.
• E) none of the above; it is impossible to find this value.

---

Definitions:

Apple Orchard

An agricultural area dedicated to the cultivation of apple trees for the purpose of producing apples.

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments leading to the establishment of a market balance.

Perfectly Competitive Industry

An industry characterized by many buyers and sellers, where no single entity can influence the market price of the product.

Marginal Cost

The price of manufacturing an incremental unit of a product.