The efficient quantity of a public good is the quantity at which marginal benefit is
A) less than marginal cost.
B) greater than marginal cost by any amount.
C) greater than marginal cost by the maximum amount.
D) zero.
E) equal to marginal cost.

Question

Quizplus · Accepted Answer

The efficient quantity of a public good is the quantity at which marginal benefit equals marginal cost. Therefore, the correct choice is E where the marginal benefit is equal to the marginal cost.

The Efficient Quantity of a Public Good Is the Quantity