To derive the market demand for a public good,________.
A) horizontally sum individual demands
B) vertically sum individual demands
C) horizontally sum individual firm marginal cost curves
D) vertically sum individual firm marginal cost curves

Question

Quizplus · Accepted Answer

The market demand for a public good is derived by vertically summing individual demands because public goods are non-rivalrous, meaning multiple individuals can consume the same unit of a good without diminishing its availability to others. This contrasts with private goods, where the market demand is derived by horizontally summing individual demands.

To Derive the Market Demand for a Public Good,________