The Efficient Scale of Provision of a Public Good Occurs

question 34

Multiple Choice

The efficient scale of provision of a public good occurs where

• A)total benefit is at a maximum.
• B)total benefit is at a minimum.
• C)marginal social benefit is at a maximum.
• D)marginal social benefit minus marginal social cost equals zero.
• E)marginal social cost is at a minimum.

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Definitions:

Activity Rates

Predetermined rates used in activity-based costing to allocate costs to products or services based on their consumption of activities.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or providing services, used in calculating production costs or rates.

Product-level Costs

Costs that can be directly attributed to a specific product, including materials and direct labor costs.

Units

Basic measures or quantities used to express a variable, item, or the extent of a service or product used in transactions.