It is inefficient for the government to charge a price for consuming a good,such as weather forecasts,because ________.
A) too many forecasts will be produced
B) the price cannot be set to cover all research costs
C) no one will be willing to pay for these forecasts
D) the marginal cost of providing this information to another consumer is zero

Question

Quizplus · Accepted Answer

The marginal cost of providing the information is zero, meaning that it is not expensive for the government to produce additional forecasts for additional consumers. Therefore, it is more efficient for the government to provide these forecasts at no cost to consumers rather than having to set a price and deal with issues like covering research costs or determining how many forecasts to produce.

It Is Inefficient for the Government to Charge a Price