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Rusol Abd Alzahra
on Oct 26, 2024

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For which type of goods is the marginal social benefit necessarily greater than the marginal private benefit?

A) public goods
B) common resources
C) artificially scarce goods
D) private goods

Marginal Social Benefit

The additional benefit to society from the consumption of an additional unit of a good or service.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that no one can be excluded from their use and one person's use does not reduce availability to others.

Private Benefit

The direct advantage or gain obtained by an individual or firm from their economic activities, without considering the impacts on third parties.

  • Apply the notion that the aggregate individual marginal benefits correspond to the marginal social benefit in pinpointing the adequate provision of public goods.
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Kaela BrooksOct 26, 2024
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