If the Marginal Cost of Producing a Public Good Is

question 139

Multiple Choice

If the marginal cost of producing a public good is less than society's total willingness to pay per unit, then

• A) the optimal amount of the public good is being produced.
• B) less than the optimal amount of the public good is being produced.
• C) more than the optimal amount of the public good is being produced.
• D) the amount of output being produced could be either greater than or less than the optimal amount.

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Definitions:

Insulin Deficiency

A medical condition where the body produces insufficient amounts of insulin, affecting blood sugar regulation.

Diabetes Mellitus

A disorder caused by insulin deficiency.

Pancreatitis

An inflammation of the pancreas, often caused by gallstones or excessive alcohol consumption, leading to abdominal pain.

Appendicitis

Inflammation of the appendix, a small pouch attached to the large intestine, which can become a medical emergency if not treated.