The Socially Optimal Level of Provision of a Public Good

question 44

Multiple Choice

The socially optimal level of provision of a public good is where the

• A) marginal cost of the output is equal to the vertical sum of the individual demand curves.
• B) marginal cost of the output is equal to the horizontal sum of the individual demand curves.
• C) marginal cost of the output is equal to the sum of the market's marginal benefit.
• D) market price of the output is equal to the vertical sum of the individual demand curves.
• E) market price of the output is equal to the vertical sum of all the market demand curves.

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Definitions:

Genetic Factors

Inherited traits from parents that influence an individual's physical attributes, behaviors, and susceptibility to certain diseases.

Fat Distribution

The pattern and location of fat deposits on an individual's body, affecting health risks differently depending on whether it's centralized or distributed.

Increased Mortality

A rise in the number of deaths, often within a specific population or due to a particular cause.

Overweight

A condition characterized by having more body fat than is optimally healthy, often measured by body mass index (BMI).