"The Principle of Increasing Marginal Cost Does Not Apply to Public

question 68

Essay

"The principle of increasing marginal cost does not apply to public goods." Is this statement correct or not?

---

Definitions:

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

S&P 500 Index Futures

Financial contracts to buy or sell the Standard & Poor's 500 Index at a future date, used for hedging or speculative purposes.

Overpriced

A situation where a security or asset is trading at a price higher than its intrinsic value or fair value.

Sell

To transfer ownership of a security or other asset in exchange for money or value.