Question

john receives a marginal benefit of $80 from one street light. nick receives a marginal benefit of $50 from one street light. christina receives a marginal benefit of $65 from one street light. john, nick, and christina are the only people in the economy. what is the economy's marginal social benefit from one street light? 1) $50 2) $65 3) $80 4) $195

Answer 1

The economy's marginal social benefit from one street light is $195.

Thus, the correct option is D.

What is marginal social benefit?

Consumer pleasure plus or minus the overall environmental and social costs or benefits is referred to as the marginal social benefit.

For instance, marginal social benefits are greater than marginal private benefits when positive externalities of consumption are present.

For illustration, let's say that producing an extra unit of a good costs a producer $50.

Let's say that pollution is released during the production of the extra unit, damaging the paint on your automobile to the tune of $25.

The producer's cost plus the external cost, or $75, is the marginal social cost of production.

Learn more about marginal social benefit, here

brainly.com/question/22519664

#SPJ1