Benefit sum vertically sum 100 80 60 40 20 20 0 mb mb

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Unformatted text preview: it sum vertically sum 100 80 60 40 20 20 0 MB MB 1 2 3 4 5 Quantity (number of acid-rain checks) The Efficient Quantity of a Public Good of Quantity (number of (number acid-rain checks checks 0 1 2 3 4 5 Total Total benefit benefit (billions of (billions dollars) dollars) 0 2.0 3.5 4.5 5.0 5.0 5.0 Marginal Marginal benefit benefit (billions of (billions dollars per acid-rain check) check) 2.0 1.5 1.0 0.5 0 Total Total cost cost (billions (billions of dollars) dollars) 0 0.5 1.5 3.0 5.0 7.5 7.5 Marginal Marginal cost cost (billions of (billions dollars per acid-rain check) check) 0.5 1.0 1.5 2.0 2.5 Net Net benefit benefit (billions of (billions dollars) dollars) 0 1.5 2.0 1.5 0 -2.5 -2.5 Total Benefit & Total Cost 7.5 TC Marginal Benefit & Marginal Cost Marginal benefit (billions of dollars per acid-rain check) Total benefit and total cost (billions of dollars) The Efficient Quantity The of a Public Good of MC MC 2.0 5.0 TB 3.5 M 1.0 1.5 Net benefit $2.0 billion 0 1 2 3 4 5 Quantit...
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