To find the social marginal benefit of public goods, one needs to
A) sum the consumers' demand curves vertically.
B) sum the consumers' demand curves horizontally.
C) sum the marginal private benefit and the marginal external benefit for each unit.
D) sum the marginal private cost and the marginal external cost for each unit.
E) subtract the individual portion of the tax burden necessary for the government to provide the good from the demand curve of each consumer who desires the good.
A
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In 2011, real GDP in the United States was $60 per hour worked. In major European economies, real GDP averaged on $48 per hour worked. This difference is explained by the points that ________ and ________
A) Americans work the same number of hours per week as Europeans on average; Americans are less productive due to technology differences B) Americans are equally as productive as Europeans; Americans work more hours on average C) Americans take more vacations than Europeans; Americans take more sick days than Europeans D) Americans work more hours than Europeans; Americans produce more per hour than Europeans E) Americans work less hours than Europeans; Americans take less sick days than Europeans
If one producer has control over an entire market and underproduces, the producer will
A) increase producer surplus by lowering pollution costs. B) increase consumer surplus by lowering producer surplus. C) increase both consumer and producer surplus. D) create a deadweight loss. E) decrease the deadweight loss that would exist if the market were efficient.