The efficient quantity of a public good is provided when the economy's
A) total benefit from the good equals its total cost.
B) total benefit from the good is less than its total cost.
C) marginal social benefit from the good equals its marginal social cost.
D) marginal social benefit from the good is greater than its marginal social cost.

Question

Quizplus · Accepted Answer

The efficient quantity of a public good is provided when the marginal social benefit equals the marginal social cost, ensuring that resources are allocated optimally.

The Efficient Quantity of a Public Good Is Provided When