Efficiency in the provision of a public good is achieved when its
A) total social benefit equals its total social cost.
B) average social benefit equals its average social cost.
C) marginal social benefit equals its marginal social cost.
D) marginal social benefit equals zero.

Question

Quizplus · Accepted Answer

Efficiency in the provision of a public good is achieved when the marginal social benefit equals the marginal social cost, as this ensures that the resources are allocated optimally, maximizing net social welfare.

Efficiency in the Provision of a Public Good Is Achieved