Public goods are efficiently provided if the price that consumers pay is:
A) zero.
B) less than zero.
C) greater than zero but less than the marginal cost of production.
D) greater than the marginal cost of production.

Question

Quizplus · Accepted Answer

Public goods are efficiently provided at a price of zero because they are non-excludable and non-rivalrous, meaning that one person's consumption does not reduce the availability for others, and it is not possible to exclude anyone from using the good. Charging a price would lead to underconsumption relative to the socially optimal level.

Public Goods Are Efficiently Provided If the Price That Consumers