Which of the following is true of the market demand for a public good? o The eff

Question

Which of the following is true of the market demand for a public good? o The efficient quantity of a public good produced occurs where the market demand curve intersects the market supply curve. Ob. The market demand curve for a public good is the vertical sum of individual consumers' demand curves c.The efficient quantity of a public good produced occurs where the marginal utility from the last dollar spent on the good is zero. at a et demand curve fora e. The market demand curve for a public good is the horizontal sum of individual consumers' demand curves.

Explanation / Answer

The right answer is the Option B.

Explanation: In the case of a private good, the market demand curve is given by the horizontal summation of individual consumer's demand curves. However, the opposite happens in the case of public goods. In the case of a public good, the market demand curve is given by the verticle summation of individual consumer's demand curves. So, option B is right.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.