The Efficient Quantity of a Public Good Is the Quantity

question 80

True/False

The efficient quantity of a public good is the quantity that sets the marginal social benefit from the good equal to the good's marginal social cost.

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Definitions:

Opportunity Cost

The expense incurred by not choosing the second-best option available during decision-making.

Producer Surplus

Is the difference between the amount producers are willing to accept for a product or service and the actual amount they receive.

Sellers' Costs

The expenses incurred by sellers in providing goods or services, including production, labor, and materials costs.

Good

A tangible product or item that satisfies some human want or need, which can be transferred or sold from one person to another.