Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
Question
Book Icon
Chapter 11, Problem 3SPPA
To determine

To calculate:

The marginal social benefit.

Blurred answer
Students have asked these similar questions
Suppose there are two residents in a neighborhood, and you know both of their demand curves for a public good. What would you have to do in order to figure out what the social demand curve? A.Multiply the two demand curves together   B.Add their demand curves together   C.Subtract the demand of the person with the lower valuation of the public good from the demand of the person with the higher valuation of the public good   D.Subtract the demand of the person with the higher valuation of the public good from the demand of the person with the lower valuation of the public good
how do you read this type of graph and know whats going on
(a) Alpha, Beta and Gamma are consumers of a  public good.  The marginal benefit ($) of each unit of  the public good is given by the following table. Public Good Alpha Beta Gamma 1st unit 8 10 12 2nd unit 4 8 3 3rd unit 2 5 0 4th unit 1 5 0 Suppose each unit of the public good costs $15. How  many units of the public good would be optimal?  Explain. (b) If the public good becomes a private good and the price drops to $8. The marginal benefits are the same as that given in (a). How many units of the private good would be purchased? Explain.
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Text book image
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Text book image
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning