To find the optimal level of provision for a public good, the government must know
A) the marginal revenue of selling the good.
B) the supply curve of the government.
C) everyone's preferences.
D) the price elasticity of demand of each buyer.

Question

Quizplus · Accepted Answer

The optimal level of provision for a public good requires understanding everyone's preferences to aggregate them and determine the societal value of the good, as public goods are non-excludable and non-rivalrous, making traditional market mechanisms like marginal revenue, supply curves, and price elasticity less relevant.

To Find the Optimal Level of Provision for a Public