The city plants trees along city streets. Draw a marginal benefit curve for Julia, who enjoys seeing the trees but is a free rider. Label it. 250- Choose the correct statement about marginal benefit. A. To obtain the economy's MSB curve of a private good, we sum the individual marginal benefit curves vertically. OB. The marginal social benefit of a private good is the sum of the marginal benefits of all individuals at each quantity. OC. A person's marginal benefit of a public good increases as the quantity of the good increases. OD. A person's marginal benefit of a private good diminishes as the quantity of the good increases. Marginal benefit (dollars per tree) Q 225- 200 175- 150- 125- 100- 75- 50- 25- 0+ 0 10 >>> 20 30 40 50 60 70 80 90 100 Quantity (number of trees) Draw only the objects specified in the question.
The city plants trees along city streets. Draw a marginal benefit curve for Julia, who enjoys seeing the trees but is a free rider. Label it. 250- Choose the correct statement about marginal benefit. A. To obtain the economy's MSB curve of a private good, we sum the individual marginal benefit curves vertically. OB. The marginal social benefit of a private good is the sum of the marginal benefits of all individuals at each quantity. OC. A person's marginal benefit of a public good increases as the quantity of the good increases. OD. A person's marginal benefit of a private good diminishes as the quantity of the good increases. Marginal benefit (dollars per tree) Q 225- 200 175- 150- 125- 100- 75- 50- 25- 0+ 0 10 >>> 20 30 40 50 60 70 80 90 100 Quantity (number of trees) Draw only the objects specified in the question.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The city plants trees along city streets.
Draw a marginal benefit curve for Julia, who enjoys seeing the trees but is a free rider. Label it.
250-
Choose the correct statement about marginal benefit.
A. To obtain the economy's MSB curve of a private good, we sum the individual marginal benefit
curves vertically.
OB. The marginal social benefit of a private good is the sum of the marginal benefits of all individuals at
each quantity.
OC. A person's marginal benefit of a public good increases as the quantity of the good increases.
OD. A person's marginal benefit of a private good diminishes as the quantity of the good increases.
Marginal benefit (dollars per tree)
Q
225-
200
175-
150-
125-
100-
75-
50-
25-
0+
0
10
>>>
20 30 40 50 60 70 80 90 100
Quantity (number of trees)
Draw only the objects specified in the question.
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