One difference between the demand for a private good and that for a public good is that

A) with a private good, each consumer chooses the quantity she wants to consume but with a public good, everyone consumes the same quantity.
B) the marginal benefit from consuming the last unit of a public good always exceeds the marginal benefit from consuming the last unit of a private good because there are externalities in the consumption of the public good.
C) with a private good, each consumer receives different amounts of benefit from consuming the product but with a public good, every consumer realizes the same amount of benefit from consuming the product.
D) with a private good, each consumer chooses the quantity she wants to consume but with a public good, each consumer chooses the price she is willing to pay for a fixed quantity.

A

Economics

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Ajax has just discovered that the marginal revenue product generated by the last worker hired was $125 while the marginal factor cost was $85. What should Ajax do?

A) Leave the level of production unchanged. B) Increase the amount produced. C) Reduce the amount produced. D) Collect more information before making a decision.

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If the MPS = 0.25, and intended investment falls from $100 to $75, national income will decrease by

a. $25 b. $75 c. $150 d. $125 e. $100

Economics