In producing the efficient amount of a public good, government should take into account: Multiple Choice the vertical sum of all individual inverse demand curves. only the demand from low-demand consumers. the horizontal sum of all individual inverse demand curves. only the demand from high-demand consumers.

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Rosa Sloan

1 May, 18:10

In producing the efficient amount of a public good, government should take into account: Multiple Choice the vertical sum of all individual inverse demand curves. only the demand from low-demand consumers. the horizontal sum of all individual inverse demand curves. only the demand from high-demand consumers.

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Ricardo · Answer 1

the vertical sum of all individual inverse demand curves.

Answer: Option A.

Explanation:

The vertical summation of individual demand curves for public goods additionally gives the total ability to pay for a given amount of the good produced by the government.

This is rather the opposite of the the total demand curve for a private goods which are produced by the private producers, which is the level aggregate of the individual interest bends at each cost.