The diagram below shows the marginal benefit and marginal cost of a public good. This economy has 3 individuals, A B and C The diagram shows the MB for each Individual and a surmation of their marginal benefits MC Marginal Benefit, Marginal Cost P3 MBABC MBC P MBA MBA 0 01 02 03 04 Quantity FIGURE 16-4 Refer to Figure 18-4 The curve MB ABC is derived by observation of the consumption of public goods at a price of 2010 a horizontal summation of the marginal benefits of an individuals at each given price lovel observation of the consumption of public goods at the optimal price a vertical summation of the marginal benefits of all individuals at onch level of output determining the private marginal cost of the public good