Consider an Ordinary Rivalrous Good, Provided in a Competitive Market

question 38

Multiple Choice

Consider an ordinary rivalrous good, provided in a competitive market. At the socially optimal level of provision of this good, the marginal

• A) sacrifice society needs to make to supply the last unit of the good is more than each consumer's marginal willingness to pay.
• B) cost of provision of the last unit of the good is equal to the consumers' marginal willingness to pay.
• C) cost of provision of the last unit of the good is more than all consumers' combined marginal willingness to pay.
• D) cost of provision of this good is zero.
• E) cost of provision of the last unit of the good is equal to all consumers' combined marginal willingness to pay.

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