Please mark all correct statements In cost benefit analysis various levels of public good is considered. The one with greatest net benefit (benefit less costs) is the optimal one. Market demand for private good is obtained by horizontal addition. Given price, B everyones' quantities they are willing to buy is added up. Demand for public good is obtained by vertical addition. Given quantity, everyones price C) they are willing to pay is added up D) The right quantity of public good is when marginal benefits equal marginal goods. E Market demand is obtained by vertical addition, public good demand by horizontal
Please mark all correct statements In cost benefit analysis various levels of public good is considered. The one with greatest net benefit (benefit less costs) is the optimal one. Market demand for private good is obtained by horizontal addition. Given price, B everyones' quantities they are willing to buy is added up. Demand for public good is obtained by vertical addition. Given quantity, everyones price C) they are willing to pay is added up D) The right quantity of public good is when marginal benefits equal marginal goods. E Market demand is obtained by vertical addition, public good demand by horizontal
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter13: Positive Externalities And Public Goods
Section: Chapter Questions
Problem 24P: Assume that the marginal private costs of a film producing fuel-efficient can; is greater than the...
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