One Difference Between the Demand for a Private Good and That

question 18

Multiple Choice

One difference between the demand for a private good and that for a public good is that

• A)with a private good, each consumer chooses the quantity she wants to consume but with a public good, each consumer chooses the price she is willing to pay for a fixed quantity.
• B)with a private good, each consumer chooses the quantity she wants to consume but with a public good, everyone consumes the same quantity.
• C)with a private good, each consumer receives different amounts of benefit from consuming the product but with a public good, every consumer realises the same amount of benefit from consuming the product.
• D)the marginal benefit from consuming the last unit of a public good always exceeds the marginal benefit from consuming the last unit of a private good because there are externalities in the consumption of the former.

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Definitions:

Quartile

A statistical term describing any of the three points that divide a ranked data set into four equal parts, each representing one-fourth of the distributed sample.

Pay Range

The scope of compensation, from minimum to maximum, that an organization is willing to pay for a specific job or level of responsibility.

Superior Performance

A level of achievement that significantly surpasses the average or expected results.

Specifying

The act of identifying or detailing the exact requirements or characteristics of something, often used in the context of product development or contractual agreements.