The efficient quantity of a pure public good occurs when the marginal cost of producing that good equals the
A) marginal benefit to the median voter.
B) marginal benefit to each individual.
C) sum of all individual marginal benefits.
D) sum of all individual marginal benefits divided by the number of voters.

Question

Quizplus · Accepted Answer

The efficient quantity of a pure public good is achieved when the marginal cost of producing the good equals the sum of all individual marginal benefits. This is because a pure public good is non-excludable and non-rivalrous, meaning that one person's consumption does not reduce the availability for others, and everyone can benefit from it simultaneously. Therefore, the efficient production level considers the total benefits to all individuals, not just to any single individual or an average across individuals.

The Efficient Quantity of a Pure Public Good Occurs When