Society's demand curve for a public good:
a. is given by the horizontal summation of individual demand curves.
b. is given by the vertical summation of individual demand curves.
c. cannot be derived from individual demand curves due to the nature of a public good.
d. is given by the average citizen's individual demand curve.
b
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Does a perfectly competitive producer have any incentive to lower its price so it is below the current market price? Explain your answer
What will be an ideal response?
Which of the following is true in long-run equilibrium for a firm in monopolistic competition?
A) MC = ATC. B) MC > ATC. C) MC < ATC. D) Any of the above may be true.
Suppose the money demand curve shifts rightward. Which of the following is true about the alternative policy options available with the Fed? a. The Fed can keep the interest rate from rising only if it increases the money supply
b. The Fed cannot prevent the interest rate from rising. c. The Fed can prevent the interest rate from rising without changing the money supply. d. If the Fed expands the money supply, the interest rate will rise even further. e. The Fed should reduce the money supply if it plans to prevent the interest rate from rising.
If the interest rate at which you can lend funds is r percent per year, then the present value of Y dollars to be received next year is
a. (1 + r)Y b. Y / r c. Y d. Y - r e. Y / (1 + r)