Question 1

Answer the next question on the basis of the following information for public good.Pa and Pb represent the prices that citizens (a) and (b) ,the only two people in this nation,are willing to pay for additional units of a quantity (Qc) of the public good.Qs represents the quantity of the public good supplied by government at each of the collective prices.
The collective willingness of this nation to pay for the fourth unit of the public good is: a and Pb represent the prices that citizens (a) and (b) ,the only two people in this nation,are willing to pay for additional units of a quantity (Qc) of the public good.Qs represents the quantity of the public good supplied by government at each of the collective prices. The collective willingness of this nation to pay for the fourth unit of the public good is:   A)  $7 B)  $6 C)  $5 D)  $3" class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)   $7
B)   $6
C)   $5
D)   $3

Question 2

A demand curve for a public good is determined by:

Accepted Answer

A)   summing vertically the individual demand curves for the public good.
B)   summing horizontally the individual demand curves for the public good.
C)   combining the amounts of the public good that the individual members of society demand at each price.
D)   multiplying the per-unit cost of the public good by the quantity made available.

Exam 4: Market Failures: Public Goods and Externalities

A demand curve for a public good is determined by:

Correct Answer
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Correct Answer
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Exam 4: Market Failures: Public Goods and Externalities

A demand curve for a public good is determined by:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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