Multiple Choice
What is one difference between the demand for a private good and that for a public good?
A) With a private good, each consumer chooses the quantity she wants to consume but with a public good, each consumer chooses the price she is willing to pay for a fixed quantity.
B) With a private good, each consumer chooses the quantity she wants to consume but with a public good, everyone consumes the same quantity.
C) With a private good, each consumer receives different amounts of benefit from consuming the product but with a public good, every consumer realises the same amount of benefit from consuming the product.
D) The marginal benefit from consuming the last unit of a public good always exceeds the marginal benefit from consuming the last unit of a private good because there are externalities in the consumption of the former.
Correct Answer:

Verified
Correct Answer:
Verified
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