For a government to be efficient, a project should be funded
A)until the marginal benefit equals the marginal cost.
B)only when the marginal benefit exceeds the marginal cost.
C)only when the marginal cost exceeds the marginal benefit.
D)as long as the marginal cost exceeds the marginal benefit.

Question

Quizplus · Accepted Answer

A project should be funded until the marginal benefit equals the marginal cost to ensure resources are used efficiently, maximizing net benefits.

For a Government to Be Efficient, a Project Should Be