Asked by
Kennedy Lewis
on Oct 08, 2024Verified
At the optimal quantity of a public good:
A) marginal benefit exceeds marginal cost by the greatest amount.
B) total benefit equals total cost.
C) marginal benefit equals marginal cost.
D) marginal benefit is zero.
Public Good
A product that one individual can consume without reducing its availability to another individual and from which no one is excluded.
Marginal Benefit
The incremental utility or satisfaction derived from the consumption or production of an additional good or service unit.
Marginal Cost
The increment in comprehensive expenses related to the generation of an extra unit of a good or service.
- Attain an understanding of the essence and specifics of public goods.
Verified Answer
VG
Learning Objectives
- Attain an understanding of the essence and specifics of public goods.