Use the following to answer question:
Figure: An Individual's Marginal Benefit from a Public Good
-(Figure: An Individual's Marginal Benefit from a Public Good)Use Figure: An Individual's Marginal Benefit from a Public Good.Assume that two individuals will share consumption of a public good;each individual has the marginal benefit curve shown in the figure.What is the total social benefit from four units of the public good?
A)$16
B)$60
C)$140
D)$200

Question

Use the following to answer question:
Figure: An Individual's Marginal Benefit from a Public Good 
-(Figure: An Individual's Marginal Benefit from a Public Good)Use Figure: An Individual's Marginal Benefit from a Public Good.Assume that two individuals will share consumption of a public good;each individual has the marginal benefit curve shown in the figure.What is the total social benefit from four units of the public good?
A)$16 
B)$60 
C)$140 
D)$200

Quizplus · Accepted Answer

To find the total social benefit from four units of the public good, we need to add up the marginal benefits of both individuals at each quantity. 
At 1 unit, the total social benefit is 10+18=28
At 2 units, the total social benefit is 9+16=25
At 3 units, the total social benefit is 8+14=22
At 4 units, the total social benefit is 7+12=19
Adding these up, we get a total social benefit of 28+25+22+19 = $140. Therefore, the best choice is C.

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