No individual is willing to pay for the efficient quantity of a public good because the marginal benefit to an individual _____ the marginal social benefit.
A)equals
B)exceeds
C)is less than
D)may be equal to or greater than

Question

Quizplus · Accepted Answer

The marginal social benefit takes into account the benefits to all individuals in society, while the marginal benefit to an individual only considers their personal benefit. Therefore, the marginal social benefit is greater than the marginal benefit to an individual, and no individual is willing to pay for the efficient quantity.

No Individual Is Willing to Pay for the Efficient Quantity