00:01
So here we're talking about public goods and the idea of public goods is that everyone benefits, right? sorry, i'm getting a little bit of lag there.
00:09
All benefit.
00:12
When society buys a good, i benefit from it, you benefit from it, everyone benefits from it because we can all consume it at the same time, right? it is non -rival.
00:20
So here, when we draw the marginal benefit curves, we have one marginal benefit curve, we have a second marginal benefit curve, they start at 6 and 10.
00:34
That means we could think about drawing a social marginal benefit and the social marginal benefit is just the sum of the individual marginal benefits vertically.
00:48
So if the person, if bob gets 6 enjoyment and barb gets 10, the social marginal benefit is 16, right? and the slope, however, is twice as steep.
01:05
So for example, if i look at this 2 point, we have 2, 4, 8, and that means at 2, the social marginal benefit has got to be 12.
01:19
So the social marginal benefit is going to be steeper than the individual marginal benefits...