Efficiency in the Provision of a Public Good Is Achieved

question 137

Multiple Choice

Efficiency in the provision of a public good is achieved when its

• A) total social benefit equals its total social cost.
• B) average social benefit equals its average social cost.
• C) marginal social benefit equals its marginal social cost.
• D) marginal social benefit equals zero.

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Definitions:

Net Income

The net income of a company, calculated by deducting all expenditures and taxes from the total revenue.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Agreement

A mutual understanding or contract between parties outlining terms and conditions for a specific arrangement or transaction.

Persons

Human beings as individuals or considered collectively, especially in a legal or formal context.