The table sets out the marginal benefits that Sam and Nick receive from the town’s street lighting:

a. Is the town’s street lighting a private good or a public good?

b. Suppose that Sam and Nick are the only residents of the town. Draw a graph to show the marginal social benefit that the town’s street lighting brings.

Transcribed Image Text:

Number of street lights 1 12345 4 Marginal benefit Sam Nick (dollars per street light) 10 8 6 4 2 12 9 6 3 0