For a public good,which statement(s)accurately describe(s)the marginal social benefit (MSB)? I.MSB equals the sum of the individual marginal benefits for all of the consumers of that unit.
II.MSB equals the sum of each consumer's willingness to pay for that unit.
III.MSB is greater than any individual marginal benefit.
A)I only
B)II only
C)I and II only
D)I,II,and III

Question

Quizplus · Accepted Answer

The marginal social benefit (MSB) of a public good is the sum of the individual marginal benefits or willingness to pay of all consumers, making statements I and II correct. Since MSB aggregates benefits across all consumers, it is greater than any individual marginal benefit, making statement III also correct.

For a Public Good,which Statement(s)accurately Describe(s)the Marginal Social Benefit (MSB)