An Efficient Level of Provision of a Public Good Is

question 71

Multiple Choice

An efficient level of provision of a public good is achieved when

• A) the cost of providing an extra unit of the good is equal to the price of the good.
• B) the cost of providing an extra unit of the good is equal to the valuation of each consumer of the extra unit.
• C) voters are satisfied that an adequate amount of the good is being produced.
• D) the cost of providing an extra unit of the good is equal to the sum of the valuations of all consumers for that unit.
• E) the valuation of each consumer for the last unit of the good produced is zero.