Asked by
Melissa Payne
on Dec 05, 2024
Verified
For a public good,which statement(s) accurately describe(s) the marginal social benefit (MSB) ? I.MSB equals the sum of the individual marginal benefits for all of the consumers of that unit.
II.MSB equals the sum of each consumer's willingness to pay for that unit.
III.MSB is greater than any individual marginal benefit.
A) I only
B) II only
C) I and II only
D) I,II,and III
Marginal Social Benefit
The additional benefit to society as a whole from producing one more unit of a good or service.
Individual Marginal Benefits
The additional satisfaction or utility that an individual gains from consuming one more unit of a good or service.
Consumer
An individual or group that purchases goods or services for personal use.
- Implement the concept that the marginal social benefit equals the aggregate of individual marginal benefits for optimal allocation of public goods.
Verified Answer
CG
Learning Objectives
- Implement the concept that the marginal social benefit equals the aggregate of individual marginal benefits for optimal allocation of public goods.
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