If a public good never becomes congested _____.
A)the optimal number of users is infinite
B)it is evidence that it has been under produced
C)marginal costs are equal to average costs across the entire range of output
D)the marginal reduction in cost per user curve is flat

Question

Quizplus · Accepted Answer

If a public good never becomes congested, then it means that the marginal cost of providing the good to one additional person is zero or close to zero, and the total benefits received by an individual do not diminish as more individuals consume the good. In this case, the optimal number of users is infinite, and the good can be consumed by an unlimited number of individuals without diminishing the utility of any one user.

If a Public Good Never Becomes Congested _____