Practice mode Markets, Efficiency And The Public Interest

For a public good, the optimal level of provision is reached when society’s total willingness to pay per unit equals which cost?

Correct answer C. Marginal cost of producing the good

Explanation

Because everyone consumes a public good together, individual valuations are summed, and efficiency requires that this combined marginal benefit equal the marginal cost of one more unit.

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For a public good, the optimal level of provision is reached when society’s total willingness to pay per unit equals which cost?

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For a public good, the optimal level of provision is reached when society’s total willingness to pay per unit equals which cost?

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