The Efficient Quantity of a Public Good Is the Quantity

question 13

Multiple Choice

The efficient quantity of a public good is the quantity at which marginal benefit is

• A) less than marginal cost.
• B) greater than marginal cost by any amount.
• C) greater than marginal cost by the maximum amount.
• D) zero.
• E) equal to marginal cost.

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Definitions:

External Validity

The extent to which the results of a study can be generalized or applied to contexts outside of the experimental conditions.

Matched Control Group

In experimental research, a group of subjects closely matched to the experimental group in key variables but not receiving the intervention.

High Levels

Refers to a considerable degree or intensity of a particular characteristic, quality, or activity.

Stress

The body's response to any demand or challenge, which can be triggered by both positive and negative experiences.