For which type of good is it necessary to sum individuals' marginal benefit curves vertically in order to obtain the economy's marginal benefit curve?
A) Mixed goods
B) Goods that are subject to the exclusion principle
C) Private goods
D) Public goods
E) Common resources

Question

Quizplus · Accepted Answer

Public goods are non-excludable and non-rival in consumption, meaning that one person's use of a public good does not diminish its availability for others to use as well. As a result, individuals cannot be excluded from using the good and their consumption does not affect the consumption of others. Therefore, the marginal benefit to society as a whole is the sum of the marginal benefits of each individual.

For Which Type of Good Is It Necessary to Sum