Checks acid 2 3 4 5 marginal benefit dollars per acid

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Unformatted text preview: checks) acid- 2 3 4 5 Marginal benefit (dollars per acid-rain check) id- Benefits of a Public Good Good 140 120 Economy's Marginal Benefit sum vertically sum vertically 100 80 60 40 40 20 0 MB 1 2 3 4 5 Quantity (number of acid-rain checks) acid- The The Efficient Quantity of a Public Good Quantity (number of acid rain acid-rain checks checks 0 1 2 3 4 5 Total benefit (billions of (billions of dollars) dollars) 0 2.0 3.5 4.5 5.0 5.0 5.0 Marginal benefit (billions of dollars per acid rain acid-rain check) check) 2.0 2.0 1.5 1.0 0.5 0 Total Total cost cost (billions of of dollars) dollars) 0 0.5 1.5 3.0 5.0 5.0 7.5 Marginal cost (billions of dollars per acid rain acid-rain check) check) 0.5 0.5 1.0 1.5 2.0 2.5 Net benefit (billions of (billions of dollars) dollars) 0 1.5 2.0 1.5 0 -2.5 Total Benefit & Total Cost 7.5 Marginal Benefit & Marginal Cost TC Marginal benefit (billions of dollars per acid-rain check) acid- Total benefit and total cost (billions of dollars) The The Efficient Quantity of a Public Good of Public Good MC 2.0 5.0 TB 3.5 M 1.0 1.5 Net...
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